iTerm and terminal settings
I decided to use iTerm instead of Terminal.app. It seems to have much better terminal support and has a few nice features such as tabs and apple scripting.
To get 8-bit characters displayed you need to add this to ~/.inputrc:
set meta-flag on
set convert-meta off
set output-meta on
To get arrow key support vim you need to set your TERM to dtterm. Add this to ~/.bash_profile:
export TERM=dtterm
To get ls colors (such as ls --color=always/auto) add this to ~/.bash_profile:
export CLICOLOR=true
Apple script to interact with iTerm (i have a number of these set up to act as profiles that i can access from QuickSilver):
tell application "iTerm"
make new terminal
tell the first terminal
launch session "SOMEWHERE"
tell the last session
write text "clear"
write text "slogin www.somewhere.com"
end tell
end tell
end tell