OSX Lion compile screen with 256 colors
Terminal now supports 256 colors. But screen is not compiled with 256, so no matter what you do in the screenrc file, you won’t get 256 colors. homebrew wont install screen since OSX provides it.
This blog gives you the steps to compile, and within a minute you’ll have a 256 color screen. http://ryanwilliams.org/2010/Oct/09/gnu-screen-256-colours-mac-os-x