Terminal.app doesn't always play nice with other systems, and suddenly you have backspace working as delete in one place (but not another), or the forward-delete button not doing anything at all. Especially logging onto a linux box via ssh and running screen seems to trigger some of these bugs. So, once I got it running nice I wrote this down.
This setup is for Leopard, which made this way easier. I have some notes on the setup for Tiger lying around, if anybody is interested then contact me.
Those having upgraded from Tiger with a fixed Terminal.app should remove any customizations done then (for example .inputrc) and go for defaults.
I base this on the "Pro" setup that comes with Leopard, then make the following modifications:
There are also a few other things I like to be different from the default, but which won't make anything break:
Here is a ready-made setup file containing all my customizations: osxterminal.terminal.