Newbie Emacs tip: This one is straight from the manual:
If you want Shell mode to handle color output from shell commands, you can enable ANSI Color mode. Here is how to do this:
(add-hook 'shell-mode-hook 'ansi-color-for-comint-mode-on)
This is BrainLog, a blog by Dan Sanderson. Older entries, from October 1999 through September 2010, are preserved for posterity, but are no longer maintained. See the front page and newer entries.