Description of problem: When using 'mock shell', $TERM is set to 'dumb'; it probably should be inherited from whatever it's set to in the invoking shell. Version-Release number of selected component (if applicable): mock-0.7.1-1.fc7
I believe this was a consequence of using a setuid launcher. Now that we're using pam and consolehelper, it should inherit (does on my rawhide box, mock-0.9.7-1)