Borrowed from http://ubuntuforums.org/showthread.php?t=396897

@Adramalech
Ctrl+space => set mark
Ctrl+W => cut
Ctrl+Y => paste

supposed you wrote in terminal:
"Im happy using Ubuntu"

and you want to copy the word "using".

Move the cursor to the letter "u" of "using", press ctrl+space. (set mark)
Move the cursor to the "g" of "using", press Ctrl+W (Cut starting from lastmark)
Move the cursor to where you want to paste, press Ctrl+Y (paste)
Posted by Anvesh

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