The locale en_US.iso88591 doesn't exist on your system which means that
Nautilus and others will fall back to the C locale for LC_COLLATE. The
command "locale -a" will show you all available locales on your system.
Your probably want to use LC_COLLATE=C in your ~/.profile
Since this is a configuration error I'm marking the report as invalid.
** Changed in: gnome-terminal (Ubuntu)
Status: New => Invalid
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LC_COLLATE edit in ~/.profile Breaks Update Manager
https://bugs.launchpad.net/bugs/463003
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