I can vouch for Console2, it really contributes to improve the 'terminal experience' in Windows. I also use cygwin as my shell and apt-cyg as my 'package manager', they make me feel almost on a Unix when I need to code or do some other task better served by terminal utils.
Give a try to ConEmu? It is powerful, fast and flexible. And latest alpha can set up itself as default windows terminal ;)
http://code.google.com/p/conemu-maximus5/
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