I'm running the latest version of Ubuntu Hoary, a fresh install, using the latest test release "Array 3". I had to fight with my xorg.conf file quite a while to get things working properly.

Somehow during all of that I must have messed up some sort of setting so that when I right-click on the Gnome desktop (2.9.90 - Hoary is a release based on the upcoming Gnome 2.10) and choose "Open Terminal" my opening location, instead of my HOME directory (/home/mattisking) is "/media/cdrom0". This probably happened when I was trying to copy xorg.conf files from a CD on my other PC and had to mount the CD.

Every time I start the terminal, it's back there. It's hardly a horrible problem but it's really getting on my nerves. I've looked all through my .bashrc to see if there was some odd setting in there that could be causing it but I don't see anything.

Help?

You probably exited X to mess with configuration, and then restarted X, but from /mount/cdrom. Exit X again, change your true working directory back to your $HOME, and restart X. Otherwise, it's something Gnome-ish with the terminal emulator I suppose, I wouldn't know.