This bug is still present in lucid 10.4 beta - gnome-terminal 2.29.6-0ubuntu5.  
The above mentioned workaround worked for me:
1) remove all layouts except for US Dvorak
2) add back whatever you want

For a dvorak user this is a pretty key bug, and I'm sure there are more
than 6 of us.

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gnome-terminal ignores current keyboard layout for ctrl+key shortcuts
https://bugs.launchpad.net/bugs/204202
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