As mentioned before, search the list archives. I posted a message here a couple years ago (in the leopard days) with a configuration that makes vo work better with terminal. It's largely a matter of changing the cursor type, and changing things to track that new type of cursor. It's relatively simple to modify settings on the fly too, if you're in a program like mutt, pine, or something similar that uses highlight tracking, the terminal has a setting for that, just change your cursor type, and all works well. Admittedly, it's irritating to have to keep switching back and forth, but since I don't have the latest osx, I can't work on a solution for that. I use terminal daily, and have very very few issues with it, and I'm still using leopard on this imac, though I have used snowleopard, and found few (if any) differences in terminal access.

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