emacsterminal
I use emacs/org-mode which uses color for hiding some of the headlines as is shown here.
This works well with Aquamcas, but when I run emacs in text mode, I still see the stars in the headline as I didn't make the background color exactly the same as the color of the font.
How can I match the text color and background color in Terminal?
On Snow Leopard you can install the TerminalColours plugin, which lets you modify the default colours.
On Lion you get a thoroughly updated Terminal.app that lets you do this out of the box and also supports 256 colours by default.
As many have mentioned above, I did this -
Take a backup of existing ShadowedIBeam.tiff
cp Terminal.app/Contents/Resources/ShadowedIBeam.tiff Terminal.app/Contents/Resources/ShadowedIBeam.orig.tiff
Make your own cursor .... or, if you are a lazy one, just use this one - 
(credit: Chris Dragon and his answer on this thread)
Then copy it over the original ShadowedIBeam.tiff
sudo cp ~/Downloads/TIbeam.tiff Terminal.app/Contents/Resources/ShadowedIBeam.tiff
And finally, run this -
defaults write com.apple.Terminal UseCustomIBeamCursor -bool YES
If you were as lucky as I was, you should have your eyes profusely thanking you in sheer gratitude!
Best Answer
Open a terminal window and type some of the text whose color you want to set the background the same as. Then open Terminal preferences.
Click the Window tab and then the Background Color. This brings up a color picker window. Click the magnifying glass in the upper left and move it over the text you want to match the color with. When you click on the text this will set the color you want. You could also set it directly in the RGB slider panel shown in the 2nd image which matches the text color from your image in the question.