I've never wrestled with OSX terminals but lately I had to switch to pterm (a version of putty stripped down to be just a terminal without all the dialer stuff) on linux because everything else is either way too primitive, or uses libvte2, which does not implement some VT escape codes crucial to working on various network gear. I'd imagine since putty can be built using macports that pterm could be as well. Kinda sad that the most competent linux emulator now hales from a Windows port.