With Panther, the default shell is now Bash. I had customized my tcsh shell using this hint In bash you can get similar results by adding this to your .bash_profile
bind '"M-[A":history-search-backward' bind '"M-[B":history-search-forward'where M-[A is the up key and M-[B is the down key.
Mac OS X Hints
http://hints.macworld.com/article.php?story=20031026174236860