Thanks for the report, that works fine on karmic, please re open if you
still get the issue with that version though.
** Changed in: gnome-terminal (Ubuntu)
Importance: Undecided => Low
** Changed in: gnome-terminal (Ubuntu)
Status: New => Fix Released
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gnome-terminal does not respect --working-directory argument
https://bugs.launchpad.net/bugs/423904
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