activating the Meta key for the Terminal app under Mac OS X Snow Leopard

I just came across a description on how to do this, which seems far outdated and just not working. So I thought, I would let you know, how it really works with Snow Leopard.
Here you see the window, that pops up for Terminal's Preferences menue entry:

You can see the Use option as meta key switch – use it, if you want!