See http://rlworkman.net/terminal-good.png for what it *should* look like, and see http://rlworkman.net/terminal-bad.png for what it *does* look like. A (probably unnecessary, but nice for confirmation) git bisect shows this: d4d09c0734fa48335496a710e184090686f159a9 is the first bad commit commit d4d09c0734fa48335496a710e184090686f159a9 Author: Nick Schermer <nick@xfce.org> Date: Fri Dec 21 22:24:27 2012 +0100 Bundle palette colors into a single string. This is quicker in the code and saves a bunch of properties.
Looks more like the term variable is broken.
After some discussion on IRC, it seems that setting TERM to "linux" in the Preferences -> Compatibility menu no longer results in a properly functioning xfce4-terminal :-) Resetting that to "xterm" (the default) makes everything fine again. I can still set TERM=linux in my shellrc to fix whatever it was that didn't work right in screen... Thanks, Nick :-)