If you are a ZSH nut like me, you find it is the first thing you setup on a new virtual machine. One thing that stumped me recently with a virtual machine running Ubuntu from an OS X Leopard terminal and ZSH, was getting the delete key to work. The quick fix is to do this:
1. Go to the terminal preferences
2. Go to settings
3. Under advanced click Delete sends Ctrl-H
Now you can run a super charged ZSH without a hitch!