Are you sure there is no syntax highlighting?
I think it is just the colour of syntax highlight is same as background, therefore you can't see it.
You can meddle with xterm properties.
Open a terminal, and man xterm for the options
This is what I use in fluxbox,
Code:
xterm -ls -bg black -bd yellow -fg gray -cr red -hc yellow -ms blue -sl 200 -pc
-ls login new pty
-bg background colour
-bd bold colour
-fg foreground colour
-cr the blinking thing
-hc highlight colour
-ms mouse curser colour
-sl scroll line (200 lines to remember)
-pc can't remember.