For most development work I tend to use emacs. Syntax-highlighting and all kinds of other good stuff.
I don't bother with vi because it tends to be orthogonal to my thought process and given me nothing short of trouble whenever I've had to use it. I think what it comes down to is whether or not you like to hit escape or control more often. The other reason I started with emacs was that it integrated very nicely with the JDE so it made Java rather easy to develop. Plus emacs will do all kinds of nice cvs stuff for me.
Matt who started the whole comments after name thing on here so :-p (and wonder's why there isn't a tongue smiley on here)