I'm on a Mac (OS 10.8.2) and I'd like to start using xterm as my default terminal, rather than Terminal.app. Unfortunately, I can't paste text into an xterm window, and this is something that I frequently want to do. When I try, it pastes strange characters rather than what I thought that I had in my clipboard. For example, if use the trackpad to highlight my username in the xterm command prompt (gregory) and then hit cmd+V to paste, the text <00f6> appears. If the text that I copied was from a web browser, then only ö appears (an umlauted 'o').
I have tried toggling all the settings in Pasteboard Preferences (enable syncing, update pasteboard when clipboard changes, update clipboard when pasteboard changes, update pasteboard immediately when new text is selected) and none of those settings appear to have any effect; certainly none have allowed me to paste.
The behavior that I want is the standard cmd+C to copy and cmd+V to paste, though I could accept alternative key bindings.
Can anyone here explain the behavior that I'm observing and recommend a solution?