Terminal.app definitely still has problems in Snow Leopard; especially the lack of 256 color support. I've switched to using iTerm2, a replacement terminal emulator, and it's solved most of my complaints about Terminal.app.
Hopefully Lion rolls a lot of those fixes into Terminal.app.
Hopefully Lion rolls a lot of those fixes into Terminal.app.
[1] http://www.wendymcelroy.com/news.php?extend.4010