Visual selection masks the text selected

Hello all,

When I run vim in mintty with the terminal type
'xterm' the highlighting in visual mode is the same
color as the main text, so that I cannot see what is
selected:

http://f60.imgup.net/vim_color97be.png ,

while with any other terminal type vim runs in
greyscale, though the selected text is inverted and
therefore readable:

http://c28.imgup.net/vim_bw2dd2.png .

How does vim adapt to the terminal type, and is the
problem with the 'xterm' due entirely to mintty, or
could I tweak some of vim's settings to have both
color display and functional highlighting (selec-
tion) in visual mode?

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