Creating VirtualBox USB rawdisks in Ubuntu

I recently was playing with a new 4GB usb stick and I wanted it install a rawdisk VirtualBox VM on it.  This would give a portable VM with decent speed.When I was trying to create the raw disk formated disk with the following command:

#> vboxmanage internalcommands -rawdisk /dev/sdc -filename ~/VirtualBox\ VMs/usbstick.vmdk 

I recieved the following error.  I even got this error running as root.  I determined it wasn't a permissons issue.

Start gnome-terminal in you home directory

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.

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