How frustrating is it when you are in vi and hit the backspace key and all it does is insert ????^? into your text file? I have run into this problem during my conversion from XP to OS X. I do a vast majority of my work on remote Linux machines – thus am a slave to SSH. I begrudgingly admit that I love VI….except for problems like this.
A few Google searches turned up the solution. End your delete/backspace woes by adding a keyboard mapping. Go to iTerm preferences -> Profiles -> Keyboard. Choose your preference (Global, xterm, etc.) and add this mapping:
Action: send hex code
Hex code: 0×08
Make sure your bookmark session is using the right keyboard and you should be good to go.