diff --git a/src/apps/terminal/SmartTabView.cpp b/src/apps/terminal/SmartTabView.cpp
index 015e064005..81bec44ac1 100644
--- a/src/apps/terminal/SmartTabView.cpp
+++ b/src/apps/terminal/SmartTabView.cpp
@@ -21,11 +21,15 @@ const static uint32 kCloseTab = 'ClTb';
 SmartTabView::SmartTabView(BRect frame, const char *name, button_width width, 
 				uint32 resizingMode, uint32 flags)
 	:
-	BTabView(frame, name, width, resizingMode, flags)
+	BTabView(frame, name, width, resizingMode, flags),
+	fInsets(0, 0, 0, 0)
 {
-	// See BTabView::_InitObject() to see why we are doing this
-	ContainerView()->MoveBy(-3, -TabHeight() - 3);
-	ContainerView()->ResizeBy(10, TabHeight() + 9);
+	// Resize the container view to fill the complete tab view for single-tab
+	// mode. Later, when more than one tab is added, we shrink the container
+	// view again.
+	frame.OffsetTo(B_ORIGIN);
+	ContainerView()->MoveTo(frame.LeftTop());
+	ContainerView()->ResizeTo(frame.Width(), frame.Height());
 }
 
 
@@ -34,6 +38,16 @@ SmartTabView::~SmartTabView()
 }
 
 
+void
+SmartTabView::SetInsets(float left, float top, float right, float bottom)
+{
+	fInsets.left = left;
+	fInsets.top = top;
+	fInsets.right = right;
+	fInsets.bottom = bottom;
+}
+
+
 void
 SmartTabView::MouseDown(BPoint point)
 {
@@ -106,8 +120,10 @@ SmartTabView::Select(int32 index)
 	BTabView::Select(index);
 	BView *view = ViewForTab(index);
 	if (view != NULL) {
-		view->ResizeTo(ContainerView()->Bounds().Width(),
-						ContainerView()->Bounds().Height());
+		view->MoveTo(fInsets.LeftTop());
+		view->ResizeTo(ContainerView()->Bounds().Width()
+				- fInsets.left - fInsets.right,
+			ContainerView()->Bounds().Height() - fInsets.top - fInsets.bottom);
 	}
 }
 
diff --git a/src/apps/terminal/SmartTabView.h b/src/apps/terminal/SmartTabView.h
index 84de73a194..56efecd244 100644
--- a/src/apps/terminal/SmartTabView.h
+++ b/src/apps/terminal/SmartTabView.h
@@ -21,6 +21,8 @@ public:
 					B_FRAME_EVENTS | B_NAVIGABLE);
 	virtual ~SmartTabView();
 
+			void SetInsets(float left, float top, float right, float bottom);
+
 	virtual void MouseDown(BPoint where);
 
 	virtual void AttachedToWindow();
@@ -39,6 +41,9 @@ public:
 
 private:
 		int32 _ClickedTabIndex(const BPoint &point);	
+
+private:
+	BRect	fInsets;
 };
 
 #endif // __SMARTTABVIEW_H
diff --git a/src/apps/terminal/TermScrollView.cpp b/src/apps/terminal/TermScrollView.cpp
index 8d0a6f621f..8e3f1e2ce4 100644
--- a/src/apps/terminal/TermScrollView.cpp
+++ b/src/apps/terminal/TermScrollView.cpp
@@ -32,13 +32,18 @@ public:
 TermScrollView::TermScrollView(const char* name, BView* child, BView* target,
 		uint32 resizingMode)
 	:
-	BScrollView(name, child, resizingMode, 0, false, true)
+	BScrollView(name, child, resizingMode, 0, false, true, B_NO_BORDER)
 {
 	// replace the vertical scroll bar with our own
 	if (fVerticalScrollBar != NULL) {
 		BRect frame(fVerticalScrollBar->Frame());
 		RemoveChild(fVerticalScrollBar);
 
+		// Overlap one pixel at the top and the bottom of the scroll bar with
+		// the menu respectively resize knob for aesthetical reasons.
+		frame.top -= 1;
+		frame.bottom += 1;
+
 		TermScrollBar* scrollBar = new TermScrollBar(frame, "_VSB_", target, 0,
 			1000, B_VERTICAL);
 		AddChild(scrollBar);
diff --git a/src/apps/terminal/TermView.cpp b/src/apps/terminal/TermView.cpp
index 9a65714936..af9c9eae67 100644
--- a/src/apps/terminal/TermView.cpp
+++ b/src/apps/terminal/TermView.cpp
@@ -456,9 +456,9 @@ void
 TermView::GetPreferredSize(float *width, float *height)
 {
 	if (width)
-		*width = fTermColumns * fFontWidth;
+		*width = fTermColumns * fFontWidth - 1;
 	if (height)
-		*height = fTermRows * fFontHeight;
+		*height = fTermRows * fFontHeight - 1;
 }
 
 
diff --git a/src/apps/terminal/TermWindow.cpp b/src/apps/terminal/TermWindow.cpp
index a6adc9d729..ea1e42f5c5 100644
--- a/src/apps/terminal/TermWindow.cpp
+++ b/src/apps/terminal/TermWindow.cpp
@@ -179,6 +179,10 @@ TermWindow::_InitWindow()
 
 	fTabView = new TabView(this, textFrame, "tab view");
 	AddChild(fTabView);
+
+	// Make the scroll view one pixel wider than the tab view container view, so
+	// the scroll bar will look good.
+	fTabView->SetInsets(0, 0, -1, 0);
 }
 
 
@@ -670,10 +674,6 @@ TermWindow::_AddTab(Arguments *args)
 		tab->SetLabel(session->name.String());
 		view->SetScrollBar(scrollView->ScrollBar(B_VERTICAL));
 		
-		// Resize the vertical scrollbar to take the window gripping handle into account
-		// TODO: shouldn't this be done in BScrollView itself ? At least BScrollBar does that.	
-		scrollView->ScrollBar(B_VERTICAL)->ResizeBy(0, -13);
-		
 		view->SetEncoding(EncodingID(PrefHandler::Default()->getString(PREF_TEXT_ENCODING)));
 		
 		BFont font;
@@ -685,14 +685,14 @@ TermWindow::_AddTab(Arguments *args)
 		int width, height;
 		view->GetFontSize(&width, &height);
 
-		float minimumHeight = 0;
+		float minimumHeight = -1;
 		if (fMenubar)
-			minimumHeight += fMenubar->Bounds().Height();
+			minimumHeight += fMenubar->Bounds().Height() + 1;
 		if (fTabView && fTabView->CountTabs() > 1)
-			minimumHeight += fTabView->TabHeight();
-		SetSizeLimits(MIN_COLS * width, MAX_COLS * width,
-						minimumHeight + MIN_ROWS * height, 
-						minimumHeight + MAX_ROWS * height);
+			minimumHeight += fTabView->TabHeight() + 1;
+		SetSizeLimits(MIN_COLS * width - 1, MAX_COLS * width - 1,
+			minimumHeight + MIN_ROWS * height - 1,
+			minimumHeight + MAX_ROWS * height - 1);
 
 		// If it's the first time we're called, setup the window
 		if (fTabView->CountTabs() == 1) {
@@ -701,7 +701,9 @@ TermWindow::_AddTab(Arguments *args)
 
 			// Resize Window
 			ResizeTo(viewWidth + B_V_SCROLL_BAR_WIDTH,
-					viewHeight + fMenubar->Bounds().Height());
+				viewHeight + fMenubar->Bounds().Height() + 1);
+				// NOTE: Width is one pixel too small, since the scroll view
+				// is one pixel wider than its parent.
 		}
 		// TODO: No fTabView->Select(tab); ?
 		fTabView->Select(fTabView->CountTabs() - 1);
@@ -789,24 +791,26 @@ TermWindow::_ResizeView(TermView *view)
 {
 	int fontWidth, fontHeight;
 	view->GetFontSize(&fontWidth, &fontHeight);
-			
-	float minimumHeight = 0;
+
+	float minimumHeight = -1;
 	if (fMenubar)
-		minimumHeight += fMenubar->Bounds().Height();
+		minimumHeight += fMenubar->Bounds().Height() + 1;
 	if (fTabView && fTabView->CountTabs() > 1)
-		minimumHeight += fTabView->TabHeight();
-	
-	SetSizeLimits(MIN_COLS * fontWidth, MAX_COLS * fontWidth,
-					minimumHeight + MIN_ROWS * fontHeight, 
-					minimumHeight + MAX_ROWS * fontHeight);
+		minimumHeight += fTabView->TabHeight() + 1;
+
+	SetSizeLimits(MIN_COLS * fontWidth - 1, MAX_COLS * fontWidth - 1,
+		minimumHeight + MIN_ROWS * fontHeight - 1,
+		minimumHeight + MAX_ROWS * fontHeight - 1);
 	
 	float width, height;
 	view->Parent()->GetPreferredSize(&width, &height);
 	width += B_V_SCROLL_BAR_WIDTH;
-	height += fMenubar->Bounds().Height() + 2;
+		// NOTE: Width is one pixel too small, since the scroll view
+		// is one pixel wider than its parent.
+	height += fMenubar->Bounds().Height() + 1;
 
 	ResizeTo(width, height);
-	
+
 	view->Invalidate();
 }