Happens here too. Previously 2.6.28-2 worked but with the latest updates 
(jaunty) gnome-terminal doesn't work work with 2.6.27 either.
 Konsole doesn't work either, so it's not purely gnome related problem. Maybe 
it's related to bash? I noticed that there's a setting in limits.conf called "- 
as - address space limit (KB)" maybe this is also related?

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Terminal emulators can not start a bash shell in 2.6.28-4
https://bugs.launchpad.net/bugs/313947
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