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I am having a strange issue with iTerm2, in terminal vim (non-gui) and the solarized color scheme. First, I have set iTerm2 to use the dark solarized colour scheme.
I am also using solarized for vim. I have the following lines in my .vimrc
set background=dark
colorscheme solarized
In the terminal the color scheme looks incorrect:

For reference this is how it looks under MacVim (gui vim)

What do I need to change in iTerm or my .vimrc to get the colors looking correctly in my console vim?