If you find yourself heading in and out of various remote servers (especially if done in the same Terminal window), then this AppleScript should be quite useful. I found a few other tips on this site about coloring Terminal windows, but none of them offered what I wanted: A single script which could be activated by a command key (via QuicKeys, iKey, Spark, etc.). The others seemed a bit too complex for such a simple task. A simple hostname and some sed parsing, and you're golden.
A couple of notes on the script (duplicated in the script's comments as well):
Mac OS X Hints
http://hints.macworld.com/article.php?story=20050817002759419