I tried using the alt+i macro to insert list item intelligently, but it didn't work and neither did other alt macros for latex suite. Any insight to resolve this problem is very well appreciated!
It turns out that the way that some terminals expect the alt key combinations differ. Some send "8-bit" codes and some send "7-bit" codes. I haven't invested the time to fully understand this issue. But, I have fixed this problem, myself, by using this solution posted on StackOverflow. Thus, I have added the following my .vimrc:
let c='a' while c <= 'z' exec "set <A-".c.">=\e".c exec "imap \e".c." <A-".c.">" let c = nr2char(1+char2nr(c)) endw set timeout ttimeoutlen=50