Basically, vim behaves strange under iTerm2 (it works normally in Terminal). It sets the cursor in a non existing lines, it displays garbage (content from other lines) when I try to edit a line in a file etc. It is completely useless :(
I changed "reported terminal type" to "linux" as suggested in some post, but it didn't help
EDIT
- iTerm2 version: Build 1.0.0.20120724 (very latest)
- running with
env TERM=xterm vimandenv TERM=xterm-256color vimdoes not help

TERM=xterm vim? – patrix♦ Aug 20 '12 at 11:00