I can confirm this. It appears that, in nautilus and files, if you navigate to a parent directory it keeps track of the deepest directory you had navigated to. And that deepest directory is used as working directory for the terminal that nautilus-open-termina uses instead of the currently viewed directory.
It is very confusing and misleading. ** Attachment added: "screenshot of Files in a directory and the terminal opened from that directory" https://bugs.launchpad.net/ubuntu/+source/nautilus-open-terminal/+bug/1087854/+attachment/3738472/+files/Screenshot%20from%202013-07-16%2004%3A09%3A04.png -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/1087854 Title: Terminal opens in wrong directory To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/nautilus-open-terminal/+bug/1087854/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs