How to get VIM to display 256 colors properly

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http://unix.stackexchange.com – I'm trying to get 256 color theme files to work with VIM under xterm. This is peaksea how it looks for me: For how it should look google peaksea vim. I'd link but it seems as a newbie I only get two links. I've tried following the tips on the wiki page to no avail. set t_Co=256 works fine but set t_AB=^[[48;5;%dm set t_AF=^[[38;5;%dm results in the escape sequences being displayed on the terminal: So what other changes can I try to make this work? Additional info $ uname -a Linux xxxxxxx 3.4.7-1-ARCH #1 SMP PREEMPT Sun Jul 29 22:02:56 CEST 2012 x86_64 GNU/Linux - $ xterm -ver (HowTos)