Thanks for your report. I can reproduce this issue in Hardy with version
0.8-1ubuntu1, which is a version from Gutsy, so this is probably due to
the recent changes in Nautilus.
** Also affects: nautilus (Ubuntu)
Importance: Undecided
Status: New
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nautilus-open-terminal no longer works in Hardy
https://bugs.launchpad.net/bugs/185435
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Desktop Bugs, which is a bug contact for nautilus in ubuntu.
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