I’m working on setting up a new (old) MacBook Pro this evening when I came across an oddity. Colors in iTerm2 were working, but not in xterm-256color mode. Both laptops are sitting on the table next to each other, so I started debugging.
There’s all manner of bugs that have been reported, but no amount of tweaking my environment variables worked. Some time during the process, Xcode 3 finished installing and all of the sudden things started working.