If you are having trouble with the keyboard output (control characters, for
example) when using MacTerminal, here are some ways you might isolate the
problem:
1. Use the Key Caps desk accessory to make sure your keyboard is working
properly.
2. Connect your Macintosh to another Macintosh, using a serial cable.
3. Select the TTY, Local Echo, and Transparent options on the Terminal
Settings window, under the Settings menu of the receiving Macintosh.
You will now be able to see if all of the ASCII values are being correctly
transmitted.