Where the heck is the right click terminal? How do I add it back on. I read on some forums about nautilus actions, but how do I use that? Any help would be great. I miss right clicking to get a terminal!

I use Gnome, and I've never seen that option. Maybe it's a Distro specific function. I do always keep an icon for the terminal on both the Desktop and the Panel, tho. Had a bad experience once when for some reason my Panel disappeared with Start Menues and all, and I had a heckuva time getting to a terminal.

In Gentoo it is:
gnome-extra/nautilus-open-terminal

code is located at:
http://manny.cluecoder.org/packages/...open-terminal/

I installed nautilus-open-terminal, but it only added a terminal link to menus inside of programs and what not, not on the desktop menu. Is there a config file somewhere I can change this?

Oddly enough - to add something to the panel you right click on it and select "add to panel" then you can select your own definition or choose an entry from the programs already in the menu...the terminal is among the latter.
It is very similar to do that on the desktop: add a launcher - the name of the program is "gnome-terminal"
I'd have expexted you to have figured that out by now...
-edit-
just rethorical: if you have it available as a context menu everywhere - why would you need to have a launcher on the desktop too?

In fact I have Control+Shift+Q open the gnome-terminal, and I don't want to create a launcher on the panel or the desktop, I just want to right click on the desktop and have the option to open a terminal window. FC3 had this with an older version of gnome. I just want to right click on the desktop and have that context menu give me the option to open a terminal. There has to be some way to do this.
--edit--
I have been clicking around, and the only programs that I previously labeled as "everywhere" is limited to the gnome-terminal itself (pretty redundant if u ask me) and nautilus.

It must be not working for you then - but don't ask why...

I installed this extension and since then I get the option to open a terminal everywhere in nautilus and on the desktop too.

the "file" menu in nautilus shows the option to open a terminal
right click on a folder anywhere - the menu shows the choice: open in terminal
right click anywhere on the desktop - the menu shows - among the other things - and not in the first position: open terminal

Because it is like this here - and you said you installed it too - I probably got you wrong and based my answer on that...