iTerm and ViM tweaks
If you work a lot on the command line and specially if you are used to Gnome on Linux, then you will find out very quickly that the default Terminal.app application for OS X does not cut it. It is okay for smallish and quick jobs, but if you are living on the command line and using ViM as your editor of choice, it becomes a mission.
All you have to do though is to download iTerm. iTerm is a GPL terminal emulator which is far better than the default terminal application. The biggest drawcard is the support of tabs. If you are used to Gnome on Unbuntu you are used to opening one terminal window with an array of terminal session windows. iTerm allows you to do the same. In the Terminal.app application (the default one) you have to open multiple windows and arrange them to make sense.
There was one quirk I found, but with a quick solution. When using ViM in iTerm, you are restricted to the hjkl keys to move the cursor. This is fine, but when you are in INSERT mode and forget to press escape and try to move the cursor, you’ll irritate yourself.
So how to fix to move your cursor with the arrow keys:
In iTerm, click on “Bookmarks” and “Manage Bookmarks”

You will see a list of bookmarks if you more than one set up so select the one labeled Default by clicking on it and highlighting it and click the edit icon (the button with the pencil in it or the third from the left).

All you then do is change the keyboard setting from xterm (OS X) to Global.

Once you are done, you need to quit iTerm and fire it up again and “Viola!” your arrow keys are hunky-dory in ViM.
I found this helpful help at : http://www.help2go.com/
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Thanks! I had been wondering about this for a while.
I had resorted to xterm in X11.app when ssh-ing. thanks!