Remotely connecting to Linux securely in Android is like a walk in the park, ssh clients abound in Google Play Store. But ssh clients are not created alike. Some are designed with specific hardware in mind and for those who like to use physical keyboards, like Droid 3, you probably want to use all the keys. I have tried Terminal IDE, ConnectBot, Android Terminal Emulator but none of them work as I would have hoped. Like using ~, tab key for command line completion, display mc (Midnight Commander) properly. But one actually meet my need today, VX ConnectBot. In my understanding it is based on ConnectBot with changes to allow a much more pleasant experience using hardware keyboard. Try it for yourself, download from Google Play Store.
* Tested using Droid Razr Maxx using stock OS and Droid 3 using ICS.