I usually use iTerm when connecting to linux boxes from my Macbook. When also using screen one may notice that e.g. the backspace key doesn’t work properly. I found a solution for this problem:
- Just fire up iTerm
- Click on “Bookmarks” – “Manage Profiles”
- Keyboard Profiles – xterm (OS X)
- Modify the setting for delete and set the value to “send hex code 8″

After that your ssh sessions may also use the backspace key with iTerm using screen.