Invoking the following in Terminal.app under Mac OS X results in a bunch of colored stripes and a blinking prompt:
python -m "fabulous.image" FILE }}}
However it works fine under X11's xterm. See the screenshots attached.
This is most likely not the issue of fabulous itself, but the way Terminal.app interprets control codes. It would be nice to find some workaround or maybe Terminal.app compatibility option in fabulous.