ConEmu is my favorite free PowerShell tool. It is a generic multi-console host so you can add as many console-based applications like PowerShell to it.
Each console application sports its own tab, so you then can easily switch back and forth between them. In fact, since the console applications live outside ConEmu as separate applications, you can even mix normal and elevated PowerShells in one window! When you add an elevated PowerShell, it displays a warning icon in the tab.
When you download ConEmu, there is no need for you to install it. ConEmu is a portable app. It is not however preconfigured with PowerShell, so one of the first things you want to do is right-click the area above the tabs and click Settings, then grab a coffee and check out the zillions of options.
One of the little known facts is that you can embed not just console applications. When you add PowerShell ISE, for example, the PowerShell editor, too, will get its own tab.
Then, once you have ConEmu up and running with Powershell, you’ll notice all the other little things: finally, with ConEmu, the console is sensitive to mouse clicks, so you can actually set the cursor position by clicking. Hold SHIFT or ALT to do line or block selections. Finally, the console feels like a modern Windows application!
Note that we received reports that ConEmu may not yet run on Windows 8. It runs fine on our boxes with Win8 RTM, but we have also seen machines where Win8 complained that this app would not run. This is still under investigation.