Here is what my terminal looks like.

Yes l am using Ryan Bates railscasts as my sample project (Thanks Ryan). As you can see it has the username@machine and then if you are in a project running git is also has the branch.

All you need to do it add the following to either your bash_login or bash_profile depending on what you are using. So first you run

   mate ~/.bash_login

I am using textmate to edit this file. Once there simple add the following

export CLICOLOR=1
export TERM=xterm-color
export LSCOLORS=gxfxcxdxbxegedabagacad  # cyan directories
export PS1="\[\033[01;32m\]\u@\h\[\033[00m\]:\[\033[01;36m\]\w\[\033[00m\]\$ \`ruby -e \"print (%x{git branch 2> /dev/null}.grep(/^\*/).first || '').gsub(/^\* (.+)$/, '(\1) ')\"\`\[\033[37m\]$\[\033[00m\] "

Save the file and reload your bash like so and you are good to go enjoy.

  . ~/.bash_login

Of course you can change the colour of the font but ill leave that to you