That didn't help... Which terminal program do you use ? (As mentioned by Nylex)
Also your title doesn't fit with your question (or you have two questions...)
The title of the terminal is not related to the current working directory...
Btw, it might be the "link" (on your menu/desktop) that you use which doesn't have the working directory you're expecting...
Edit: With the right search, you could have found
this too...