Mac terminal question (and VI)

Hey guys, I was just wondering if any of you use Terminal SHH client on your mac? Specifically, I use VI for school to program in C perl php etc. I love the editor but I have one pet peeve on it when I use it on my mac. When I hit the delete key (I guess its the equivalent of backspace on my macbook) it deletes characers to the right.

I am so used to this button acting like a backspace and deleting to the left like on a PC. I am sure there has to be a setting that I can tweak with on terminal or VI to get this going this way on my mac.

Any help will be appreciated.