Wow. Emacs just "wowed" me again. I'd used the mode terminal.el before, but now just played with it some more and found out how powerful it is. Wow.
To enable terminal mode type M-x terminal-emulator. Emacs will ask you what command you want to run, with a default as your login shell (e.g. tcsh). After you press return, Emacs will make a new buffer named *terminal* that will act just like a normal terminal window. However, this means that you can't use your normal Emacs control characters, ctrl-c will be sent right to the terminal, which is very cool since you can run any console program just like as if you were in a terminal.
So, the trick is the key sequence C-^ which will let you enter extended commands into emacs. The most useful is C-^ ? which will give you a nice help screen. Other useful ones are C-^ o which will switch you to another window in the current frame, another is C-^ b which will allow you to switch to another buffer. (Even more useful with iswitch.el which I talked about a few days ago).