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In OS X's Terminal application, copy/paste works universally. There is no tweaking for specific tools or programs. CMD+C and CMD+V work at all times. Everywhere. CMD+X for cut is a different manner.

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My question was, in this scenario, is it simply inserting those characters into the buffer as if you were typing them, or was the remote program aware it was a copy and paste. This of course does depend on the programs used both on the end, and in the chain.

If it's the latter, then most linux setups wouldn't need any configuration if you used the terminal's inbuilt copy paste.

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