A couple more points:
My plan is to build several in several of my "Allies" main systems.
I have never attempted this, but the AI won't allow you to build influence starbases in it's space, not even an ally, so I doubt it will allow you to build a terror star either. Could someone please post back and confirm or deny this for me? My advise, from what I believe to be true is to build them just outside of your target's area of influence, and move them into position after.
your fleets make a run for it
They *attempt* to make a run for it. If your fleet has enough movement points left to completely clear the area of effect, then they will survive. (Learned this one the hard way). So you won't necessarily be able to move into position and attack on the same turn. Wait a turn for their movement points to refresh, or better yet, move them away yourself before attacking.
Terror stars are neat gadgets, but they are too expensive, slow, and completely helpless to be game-changing. They are really just for mopping up at the end of a game. The effect is impressive, but once I made and used one I got the 'been there, done that', and haven't made another since.