Confirmed then as a bug in nautilus open terminal, which I thought was the case. But given the date of this bug was reported (ie 2009-02-23), amazed that no new update has been released which fixes it. Both myself and my friends who have to access several servers at root level would put this in the urgent category... at least 4 months and counting for a fix release
I hope these buggy on release packages aren't going to be a norm, as it is one of the reasons why I ditched certain well known commercial OS in the past - everything seemed to be tried and tested in Linux before the packages entered the 'stable' category, it is obvious in this instance that nautilus-open-terminal should have stayed in unstable beta testing before it was rushed through for jaunty. Another example of a package which seems to have gone backwards on Jaunty/Gloria is the VLC video player - half the time now it won't play videos which it played perfectly well on the older version, even with the same but current video codecs - I get a blank screen (confirmed with other users of Gloria too, even using different graphic cards/hardware).
I hope Ubuntu aren't rolling out new distro updates just for marketing purposes, because if these bugs/backward moves continue, I can see a time when I might have to either ditch the Ubuntu based distros altogether or buy an Apple Mac!
Thanks.. hoping an update comes out asap.