The author of PuTTYcyg just fixed a minor bug I found. He is awesome. I heartily endorse PuTTYcyg to all Cygwin users, and think Cygwin should put it in their archive and ship it as the default terminal launched when you click the Cygwin icon. The rxvt port is cute, but PuTTY's feature set is huge, it's MIT licensed, and provides real working xterm features.
(I further think that ncurses should support keeping all 1497 separate files [which are between 55 and 2597 bytes long] in a .jar file)