wounded in the line of duty
Very similar to my default settings, and there's some excellent comments above as well.
If you want a larger default terminal size, then adjust Window->Columns and Rows.
As for font, I used to use Lucida Console, but got frustrated with the minimal UTF-8 support that it has. A good alternative is Deja Vu Sans Mono (8 pt). It's roughly the same size as LC 9pt, has better distinction between capital O and zero, and has VASTLY better UTF-8 support.
In Connection->Data change the default terminal type. What you should change it to largely depends on the remote system, but I would recommend either putty-256color or xterm-256color.
More information about formatting options
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