diff --git a/src/apps/terminal/Shell.cpp b/src/apps/terminal/Shell.cpp
index 5dd10ae79d..12c3c92689 100644
--- a/src/apps/terminal/Shell.cpp
+++ b/src/apps/terminal/Shell.cpp
@@ -539,7 +539,7 @@ Shell::_Spawn(int row, int col, const ShellParameters& parameters)
 		/*
 		 * setenv TERM and TTY.
 		 */
-		setenv("TERM", "xterm-color", true);
+		setenv("TERM", "xterm", true);
 		setenv("TTY", ttyName, true);
 		setenv("TTYPE", parameters.Encoding(), true);
 
diff --git a/src/apps/terminal/TermParse.cpp b/src/apps/terminal/TermParse.cpp
index 6664dd0b59..0ae798a326 100644
--- a/src/apps/terminal/TermParse.cpp
+++ b/src/apps/terminal/TermParse.cpp
@@ -833,30 +833,23 @@ TermParse::EscParse()
 								fAttr = FORECOLORED(7);
 								break;
 
-							case 1: /* Bright / Bold     */
-								fAttr |= FORECOLORED(8);
-								fAttr |= FORESET;
+							case 1: /* Bold     */
+							case 5:
+								fAttr |= BOLD;
 								break;
 
 							case 4:	/* Underline	*/
 								fAttr |= UNDERLINE;
 								break;
 
-							case 5:
-								fAttr |= BOLD;
-								break;
-
 							case 7:	/* Inverse	*/
 								fAttr |= INVERSE;
 								break;
 
-							case 2:	/* Faint: decreased intensity */
-							case 21:	/* Bright/Bold: off or Underline: Double */
-							case 22:	/* Not Bold, not bright, not faint	*/
-								fAttr &= ~(FORECOLORED(8) | BOLD);
-								fAttr |= FORESET;
+							case 22:	/* Not Bold	*/
+								fAttr &= ~BOLD;
 								break;
-								
+
 							case 24:	/* Not Underline	*/
 								fAttr &= ~UNDERLINE;
 								break;
@@ -873,7 +866,7 @@ TermParse::EscParse()
 							case 35:
 							case 36:
 							case 37:
-								fAttr &= ~FORECOLORED(7);
+								fAttr &= ~FORECOLOR;
 								fAttr |= FORECOLORED(param[row] - 30);
 								fAttr |= FORESET;
 								break;
@@ -882,7 +875,7 @@ TermParse::EscParse()
 							{
 								if (nparam != 3 || param[1] != 5)
 									break;
-								fAttr &= ~FORECOLORED(255 - 8);
+								fAttr &= ~FORECOLOR;
 								fAttr |= FORECOLORED(param[2]);
 								fAttr |= FORESET;
 
diff --git a/src/apps/terminal/TermView.cpp b/src/apps/terminal/TermView.cpp
index c79960e357..8da3c92dc7 100644
--- a/src/apps/terminal/TermView.cpp
+++ b/src/apps/terminal/TermView.cpp
@@ -79,14 +79,14 @@ static rgb_color kTermColorTable[256] = {
 	{  6, 152, 154, 0},	// cyan
 	{245, 245, 245, 0},	// white
 
-	{ 64,  64,  64, 0},	// black
+	{128, 128, 128, 0},	// black
 	{255,   0,   0, 0},	// red
 	{  0, 255,   0, 0},	// green
 	{255, 255,   0, 0},	// yellow
 	{  0,   0, 255, 0},	// blue
 	{255,   0, 255, 0},	// magenta
 	{  0, 255, 255, 0},	// cyan
-	{128, 128, 128, 0},	// white
+	{255, 255, 255, 0},	// white
 
 	{  0,   0,   0, 0},
 	{  0,   0,  51, 0},