Public bug reported:

Binary package hint: nautilus

Follow the steps to reproduce (everytime) in Feisty Fawn 7.04:

Pre-requisites: 
Make sure you have the Nautilus Open Terminal package installed.

sudo apt-get install nautilus-open-terminal

Then:

1. Open Control Centre -> Preferred Applications
2. Click on the System tab and select Custom from the Terminal Emulator choices.
3. Delete the contents of the Command and Execute flag fields (so both fields 
are empty) and click on Close to save.
4. Open System Monitor and go to the processes view and order the view by % CPU 
(descending)
5. Right-click anywhere on the Desktop to display the Nautilus context menu and 
select Open Terminal.

After a very short period, Nautilus will start to load the CPU and will
eventually hit 100% utilization. Nautilus freezes and no terminal window
is displayed.

Using killall nautilus is the only way to recover from this scenario.

** Affects: nautilus (Ubuntu)
     Importance: Undecided
         Status: New

-- 
Missing preferred terminal emulator causes Nautilus to 100% CPU
https://bugs.launchpad.net/bugs/133837
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Desktop Bugs, which is a bug contact for nautilus in ubuntu.

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