Thank you for that piece of information... that's exactly what I need.
For future people that run across this post here's what I did.
I looked it up:
http://www.starnet.com/xwin32kb/edit/Color_and_font_options_for_xterm_and_dtterm/and you go to Settings > Environment > General Settings
and in "Terminal to Launch Console programs"
You'll see something like
If you want (for example) a black background and white text.. you change it to
xterm -bg black -fg white -T $TITLE -e
Some reason it didnt work when I added to the end but I had to add it right after xterm to make it work.
That's how you fix the problem and I hope this helps somebody in the future.