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Is there any way to use "Option" as the meta key in OS X Lion's Terminal.app? The checkbox that was present in Snow Leopard is nowhere to be found.

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Are you sure that it's not to be found? If I look at Preferences → Settings → Keyboard, the checkbox for Use option as meta key is at the bottom.

I am on 10.7.1 so it may be something overlooked in the GM of Lion and fixed in the first patch.

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Nope, you're 100% right. No idea how I missed it... –  Bryan Irace Sep 22 '11 at 11:54
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I came here an hour ago with the same question and now I feel the answer need to be better elaborated. So:

  1. Open the Terminal. The terminal menu should appear near to the apple icon.
  2. Click Terminal --> Preferences... The settings dialog box should pop up.
  3. Click the Settings tab on upper left side of the dialog box, then you should be able to choose the Keyboard button.

The Use Option as meta key check box should be visible on the lower border by the center. And you are done.

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