Emacs set-cursor-color in iTerm problem

Hi
I'm trying to customise emacs to work within iTerm (I've aliased emacs = emacs -nw so it runs inside my shell) but I can't get the 'set-cursor-color' to work. I have the following in my .emacs file:

(set-cursor-color "LightSkyBlue")
(set-background-color "Black")
(set-foreground-color "White")
(set-mouse-color "LightSkyBlue")
(global-font-lock-mode t)
(setq font-lock-maximum-decoration t)

which successfully changes the background and foreground colours, but not the cursor colour! (so now it's black on black.. I can't see it!)

This setting works if I open emacs outside my terminal, or under X11 or Mac's inbuild 'Terminal' application, but I like using iTerm... any ideas most welcome!

Thanks

Pepperjack