I’ve had to do some admin work on a Windows 2008 R2 server and found it handy to have a POSIX environment installed on Windows so I have ssh, grep, rsync, git, bash, vim and other functionality available all working within the same shell.
While vim was functional, the terminal was one that vim didn’t recognize as color, and hence the editor was only black and white and a few shades of gray. A little Googling returned this page: http://infrablue.tripod.com/cygwin.html with instructions on using rxvt as the terminal and configuring bash to run within it. A few tweaks, and I’m running vim and editing in color!
[UPDATE] @mintty_cygwin on twitter was kind enough to point out that rxvt development is pretty much stopped, but that the project http://code.google.com/p/mintty/ offered yet another TTY to run on Windows. This one has some pretty cool options, and is easy to install. I’m up and running with it now!