Dynamips and the Leopard Terminal

I wanted Dynamips to act more like the way I think and it keeps on opening

gf:~ gregferro$ cd Documents/dynalab/Dynagen/Dynagen.app/Contents/Resources/
gf:Resources gregferro$ ls
AppSettings.plist configobj.pyc dynagen.ini pemu_lib.pyc
appIcon.icns configspec dynamips_lib.py script
confConsole.py console.py dynamips_lib.pyc validate.py
confConsole.pyc console.pyc en.lproj validate.pyc
configobj.py dynagen pemu_lib.py
gf:Resources gregferro$
gf:Resources gregferro$
gf:Resources gregferro$ sudo vim dynagen.ini
Password:

I want to use iTerm instead of the Terminal that is part of Leopard for the Dynagen / dynamips output. So you can see the following

# Uncomment below of OS X with Terminal with named tabs (requires Leopard)
#telnet = /usr/bin/osascript -e 'tell application "System Events" to tell process "Terminal" to keystroke "t" using command down' -e 'tell application "Terminal" to do script with command "telnet %h %p ; exit" in last tab of first window' -e 'tell application "Terminal" to tell window 1 to set custom title to "%d"'

# Uncomment below for OS X with iTerm with named tabs
telnet = /usr/bin/osascript -e 'tell app "iTerm"' -e 'activate' -e 'set myterm to the first terminal' -e 'tell myterm' -e 'set mysession to (make new session at the end of sessions)' -e 'tell mysession' -e 'exec command "telnet %h %p"' -e 'set name to "%d"' -e 'end tell' -e 'end tell' -e 'end tell'

The only problem here is that the Terminal window is still used by Dynagen, so I still end up with Leopard terminal. I wonder if there is a way to fix this.