I run term (more precisely multi-term) inside of emacs 24.2.1 installed from the FreeBSD port. It works quite well, but one problem that I haven't been able to solve is this. When I page output the text scrolls two lines too far. For example, if I do: $ man ls, I don't see the first two lines even with an M-v. After I exit the pager, I can do a C-c C-j and scroll back and see that they were there, but I just can't get at them while the pager is running.
The problem seems independent of the shell I use (I tested with zsh and tcsh) or the pager (I tested with less and more).