Comment 16 for bug 87966

The only 'bug' is that the screenrc doesn't enable the 256 colors by default.

<---------cut here--------->
# terminfo and termcap for nice 256 color terminal
# allow bold colors - necessary for some reason
attrcolor b ".I"
# tell screen how to set colors. AB = background, AF=foreground
termcapinfo xterm 'Co#256:AB=\E[48;5;%dm:AF=\E[38;5;%dm'
# erase background with current bg color
defbce "on"
<---------cut here--------->

That gets you 95% of the way there, after that you just need to set the terminal type in screenrc, ie adding:

term xterm

completes the configuration.