I like ansi-term in emacs. It is the closest to a "real" terminal, offering all the goodness that bash, zsh, or whatever your favorite shell can give you. However, you definitely lose a few things in going to it. The following emacs code restores at least the things I find most useful: dabbrev-completion, yanking, and correct colors.
When you use this code, note that dabbrev-completion is C-c /, and yanking is C-c C-y.
