What is the best phone wire to use to replace the original 1950's phone wire that is currently in my house?

(Besides phone the new wire would also handle fax and DSL.)

Also, what type of main phone terminal is recommended, if any? Right now my phone wire enters the house in the basement and is attached to a very old 2 screw phone terminal.

You can purchase standard low voltage phone wire and the junction box at any home improvement store. No need for special wire to handle your fax and dsl.