I'm still not able to do 132 column, but I was able to do it with 48 rows.
I tried all the suggestions here but no luck.
Heres what I did.
1) I pointed my PROTERMCAP file in my .profile like this.
PROTERMCAP=/tmp/protermcap2.dg
2) I modified protermcap2.dg many ways. I tried forcing 48 x 132, I tried ws, I tried both but no luck.
# note that we are assuming auto-wrap mode.
# This terminal is Supported by PROGRESS.
V1|vt100|vt100-80|vt100_series|DEC VT-100 running in ansi mode:\
blah blah blah
:ws:\
#:co#80:\
#:co#132:\
blah blah blah
#:li#24:\
#:li#48:\
blah blah blah
:tc=v7kf:
3) I fired up my terminal emulator NetTerm Client using VT100 emulation. If I type stty, I see rows=48, col=132. But when I fire up _progress, the Progress Editor cuts the screen and columns back to 80.