Font for Terminal window

I just downloaded the Momiji release and am looking at the Terminal window. It seems to work just fine, but there is a cosmetic problem.

I have my output font set to "Verdana" and the spacing and placement of characters in that window is odd.

The cursor is indented far to the right of the $ prompt.
When I type, the characters are double spaced.
If I do tab-completion, though, the characters are right, so when I type a couple characters then hit tab it looks like:

R u b y mineProjects

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