I've used the mode and I really liked it, except when it starts to behave buggy needing to kill the server loosing all the windows.

I prefer to name it psycho mode.

I second rxvt-unicode. Very configurable, and works fine with a tiling window manager.

I don't have that problem. Perhaps there's something glitchy about the way rxvt-unicode works with your setup in particular -- which might be an rxvt-unicode problem, but not a problem that affects me, evidently.