iTerm2 is a replacement for Terminal. It works on Intel Macs with Leopard or Snow Leopard. It is based on the iTerm open-source project
Full screen mode for a distraction free environment.
Transparent windows with blurring and custom background pictures
Supports select-to-copy and mid-button paste
Smart window placement
xterm mouse reporting for click and scroll events
Focus follow mouse
Works on Intel Macs on 10.5 and 10.6
terminfo support with flexible custom key-mapping
Supports a variety of additional xterm escape sequences, including xterm titling sequence and xterm mouse reporting
ANSI 16 colors, which are also fully customizable
Supports 256 color mode
Setting of the COLORFGBG variable for autodetection of color scheme in apps like Vim
Anti-idle function that avoids disconnection because of no activity
Tabs can be drag and drop between windows.
Tab labels can change color to indicate the session activities
Choose among Metal, Aqua, Adium, and Unified styles
You can send keyboard input to multiple tabs
Bookmarks and Profiles
You can fully customize each session, with support of macro in bookmark commands
Bookmarks can be specified to handle URLs such as ftp.
Create profiles for managing bookmark settings.
User can specify a second font to display non-latin characters to achieve best look
Supports double-width characters, as used in many eastern Asian languages
Supports all language encodings that are available with OS X