I have iTerm v0.10 configured to show unified tabs at the bottom of the window and to use compact labels. When I click in certain places within a tab, iTerm will not make that tab active. I often see this on tabs with shorter names, like "login". If I double-click instead, the "Info" palette (floating dialog with "Window" and "Session" tabs) will appear and the tab will be selected. If I use key combinations or menu items to select the tab instead, that works.
System: MacBook Pro running MOSX 10.6.7