I’m using iTerm 2 as a replacement for the standard terminal in OS X. It comes with a lot of nice features and advantages over the standard terminal. For instance it’s easy to change color schemes, you can find several of online.
However, ls output with colors ( ls -G) is not default, which is why you have to make an alias for “ls” pointing to “ls -G”.
echo "alias ls=’ls -G’" >> ~/.bashrc
If you still have problems displaying the colors, open Prefrences > Profiles > Terminal and set “Report Teminal Type” to “xterm-256color”.