I'm actually on version 0.4.5 (and it's true on 0.4.6 as well), but it wasn't available above. Terminal works great on my machine except for one damning problem. The cursor, rather than taking its color from the "cursor" color preference, takes its color from the background color preference. This is most unfortunate, as it means the cursor is required to be the same color as the background.

My only workaround is to make the background transparent, which makes the cursor visible.

I know there's not an insanely huge base of people using Terminal on the Mac, but there probably should be, it works so well (aside from this problem). If anyone has a workaround I'd really appreciate it. It should probably be fixed though, since it means that something is probably wrong somewhere. Taking the wrong color mapping sounds like a real bug and not just a compatibility issue.