CentOS 6.0 comes with the ability to set its TERM to screen-256color. It doesn't work in CentOS 5.7, though. How can you get CentOS 5.7 to support screen-256color?
So I have screen compiled with 256 colors, running on Konsole in 256 color mode. If start screen, the TERM is set to "screen". If I manually export the TERM to screen-256color everything works ...