I noticed using Terminal to connect via SSH to an IPv6 server and opening a file with nano, character repeats and skipping of the display when pressing and holding backspace or when typing rapidly. This is only new since I installed OS X 10.7 Lion. I seem to have solved the issue by going into Preferences for Terminal.app and selecting the Advanced tab and changing Declare terminal as: to xterm-color from xterm256-color.

Hopefully this helps someone else.

Ace Linus - 2013-05-13 07:19:34
Thanks a bunch, such a PITA! Aprreciated!
Bradmkjr - 2012-07-22 22:03:59
Thanks for sharing, a year later and this is still an issue in Lion
adam.mooloop - 2012-02-23 12:01:23
You are a legend! This has been bugging me for ages :D
Gilligoon - 2011-08-01 02:26:36
Thanks for your tip, I just needed to make that change for every style of terminal, not just the default style.

Still, it was frustrating for several days!
Gilligoon - 2011-08-01 01:38:54
this is very frustrating, as one of the main reasons I upgraded to 10.7 was the promise of a vastly improved Terminal.

I changed the prefs as you suggested, and it is helping on some windows, but it seems worse with non-standard font sizes, such as when in full screen mode or CMD+ resized windows.

I use Terminal for SSH all day every day, nano frequently, and I cannot afford to have broken config files due to this problem.
digitalaun - 2011-07-27 04:53:26
Had the same problem, and that looks to have fixed it. Thanks!

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