How to fix the Delete key in Terminal.app

At some point in 10.4 the delete key in terminal started acting as a forward delete. This became apparent when using nano, for example. Well, I figured out how to fix it.

1. Open Terminal.
2. From the Terminal menu, select Window Settings.
3. In the Terminal Inspector panel, select Keyboard from the popup menu.
4. Check Delete key sends backspace.
5. Select the Use Settings as Defaults button.