On the N900, I find that osso-xterm shows the text selection toggle arrow (at the bottom of the screen, to the left of Ctrl) inconsistently. Sometimes it is there, and sometimes it is not. Usually it is absent. Strangely, I can sometimes resurrect it by changing the font size.
I have not changed the key bar shortcuts via gconftool-2; they are the default Ctrl Tab Esc PgUp PgDn.
Is this a feature or a bug?
Are there any settings that control the appearance of the arrow button?
I am having the same problem and I think it's a bug which came with the PR1.3 update.
You can resurrect the arrow by clicking the fullscreen button and then back to normal screen. That fixes it for me.
It only shows up after the screen is full. Before that you can select text without it. After the screen is full it shows up so you can choose between scrolling and selecting.