How enable colors in Terminal?

Colors are not really enabled or disabled, the standard Terminal.app supports ANSI colors so if you run a program that supports ansi colors such as vim or BitchX it will display text with colors.

Also, you may download color ls from macosx ports and you can have a look at the following to add color to your unix prompts if you use bash: http://dougbarton.net/Bash/Bash-prompts.txt
 
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