Copy/Paste in emacs ansi-term shell

As described in this lovely blog snippet, there's a function, term-paste, in term.el, that does exactly what you want. By default it's bound only to S-insert but the blog's recommended C-c C-y seems like a good suggestion.

You may want to simply switch between character mode and line mode while using the terminal. C-c C-j will run term-line-mode, which treats the terminal buffer more like a normal text-buffer in which you can move the cursor and yank text. You can switch back to character mode by running term-char-mode with C-c C-k.