That is fixed upstream with fad7e1e6ec57cc9a2b5719e4ef4f09514505b894 and
ea0b61ae58fe484ebd1a5a5751998eadde92c12d (only in master, not backported
to xfce-4.8 yet).

We could consider fixing that for oneiric as well, since this plugin is
in our default panel configuration, and xfce4-terminal is the default
terminal emulator.

** Also affects: xfce4-panel (Ubuntu Oneiric)
   Importance: Undecided
       Status: New

** Also affects: xfce4-panel (Ubuntu Precise)
   Importance: Low
       Status: Fix Committed

** Changed in: xfce4-panel (Ubuntu Oneiric)
   Importance: Undecided => Medium

** Changed in: xfce4-panel (Ubuntu Oneiric)
       Status: New => Triaged

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https://bugs.launchpad.net/bugs/877811

Title:
  DirectoryMenu plugin "Open in Terminal" doesn't work

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