This article is from the the Brief Linux FAQ (BLFAQ) Maintained by Neil Zanella nzanella@ganymede.cs.mun.ca
You could either use "make xconfig" or if you have the terminfo library installed you could say "export TERM=xterm-color" or something similar. Look at the entries in the terminfo library to chooses an appropriate value for the TERM environment variable.
 
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