In earlier versions of pre-Lucid Lynx, when you started gnome-terminal, you would be sitting in your home directory to start. Most all terminal emulators start you in your home directory if you are not running as a superuser. Now with Lucid Lynx, you now start in the VFS (Virtual File System) root, aka. '/'. This is very inconveient for many of the things I do expect. Here is the way to fix gnome-terminal so it's expected startup behavoir is restored. Right click on you menu drop down icon and click on 'Edit Menus'. Find the 'Terminal' entry in the tree. It is usually found in 'Applications' -> 'Accessories'. Select the 'Terminal' in the list on the right and click on the 'Properties' button. In the 'Command:' field it probably just says:
You want to change that to:
Then click 'Close' to save your changes. Press 'Close' again at the Edit Menu main menu. This change will set the working directory to whatever you home directory is set to.