--- terminal.py.bak	2013-03-19 20:06:16.090578135 +0000
+++ terminal.py	2013-03-19 20:27:46.810503087 +0000
@@ -94,6 +94,7 @@ class Terminal(gtk.VBox):
     custom_encoding = None
     custom_font_size = None
     layout_command = None
+    directory = None
 
     composite_support = None
 
@@ -1175,7 +1176,11 @@ for %s (%s)' % (name, urlplugin.__class_
                 details[1]))
             command = 'telnet %s %s' % (details[0], details[1])
 
-        if options and options.working_directory and \
+        # working directory set in layout config
+        if self.directory:
+            self.set_cwd(self.directory)
+        # working directory given as argument
+        elif options and options.working_directory and \
            options.working_directory != '':
             self.set_cwd(options.working_directory)
             options.working_directory = ''
@@ -1406,6 +1411,8 @@ for %s (%s)' % (name, urlplugin.__class_
             self.really_create_group(self.titlebar, layout['group'])
         if layout.has_key('title') and layout['title'] != '':
             self.titlebar.set_custom_string(layout['title'])
+        if layout.has_key('directory') and layout['directory'] != '':
+            self.directory = layout['directory']
 
     # There now begins a great list of keyboard event handlers
     def key_zoom_in(self):