This is a pretty significant bug.  It is still present in Xubuntu 7.10, herd 5. 
 I do hope it will be fixed before the official release.
This is really important.  When any average user enters commands, as suggested 
from online guides or elsewhere, their sessions will just end.  This will only 
add to user frustration.  This really, really, needs fixing.

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Attempting to open terminal cause restart
https://bugs.launchpad.net/bugs/81512
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