Alright, I fixed it. The problem was with yasnippets, but the suggestion on the link didn’t work. For some reason setting yas-minor-mode to -1 didn’t work. What I had to do was set yas-dont-activate to something.
Suggested fix that did NOT work for me:
(add-hook 'term-mode-hook (lambda() (yas-minor-mode -1)))
What DID work for me:
(add-hook 'term-mode-hook (lambda() (setq yas-dont-activate t)))
I’m running emacs 23.4.1