Zane, are you talking about the X11 xterm or
Terminal.app? I'm
running Apple's X11 here on 10.3, and the xterm that came with X11
honors -xrm.
$ xterm -xrm '*cursorBlink:true'
starts an xterm with blinking cursor, and
$ xterm -xrm '*cursorBlink:false'
starts one with a solid cursor.
The xterm under Apples version of X11, under both 10.2 and 10.3. I'll have
to try to doublecheck on the specifics. It could be it simply doens't
support remapping the keys.
Zane