I compiled vim 7.3 with +cursorshape and added the following to my ~/.vimrc:
set t_SI = "\<Esc>]12;purple\x7"
set t_EI = "\<Esc>]12;blue\x7"
but Terminal.app still displays the same grey cursor, irrespective of the current vim mode. Terminal identifies itself as xterm-color, so I thought the information in :help termcap-cursor-shape would apply.
Am I missing something?