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Please consider the following image:

enter image description here

I randomly wandered into the telecom room at work a while ago, and I noticed these strange looking terminals. How do you terminate a wire like this? Is there a certain tool to create the coil around the terminal? What do I call this sort of terminal?

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This is called Wire Wrap. The low resistance connection is made by cold-welding the wire to the pin at the corners of the pin.

There is a special tool for making wire wrap connections.

enter image description here

Here's a video about wire wrap. [Nothing special about it. This is the first one I've come across.]

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