Set terminal title to user@host:directory. Set prompt to same. root's PS1 adds a highlight of the username. Execution is conditional on terminal type to prevent borkage.

# Following sets prompt to [userid@host dir], and puts the full
#   user@host:/full/path/spec in an xterm title bar.
function proml
{
case $TERM in
   xterm*|rxvt|eterm|wterm*)
       local TITLEBAR='\\[\\033]0;\\u@\\h:\\w\\007\\]'
       # eval `dircolors /etc/dir_colors`
       ;;
   *)
       local TITLEBAR=''
       ;;
esac

case $TERM in
   linux|xterm*|rxvt|[Ee]term|wterm|screen*)
       alias ls='ls --color=auto'
       ;;
   *) ;;
esac
   

# shell prompt
PS1="${TITLEBAR}\\
[\\u@\\h:\\W]\\
\\$ "
PS2='> '
PS4='+ '
}

if [ ! -z $PS1 ]; then
   proml
   export PS1
fi