I have the same problem on Xubuntu 7.04, release version: when I start the Terminal from the Applications menu it does not appear; instead I am thrown out of XFCE and then back to the Xubuntu login screen. This was not a problem on Xubuntu 6.10.
The OS was upgraded from Xubuntu 6.10 via the Xubuntu Alternate CD, and all online updates have been applied since then. The graphics controller is reported by Sysinfo as "Intel Corporation 82810E DC-133 CGC [Chipset Graphics Controller] (rev 03) (prog-if 00 [VGA])". The Xorg version is reported as "7.2.0 (04 April 2007)". The kernel is reported as "2.6.20-15-generic (#2 SMP Sun Apr 15 07:36:31 UTC 2007)". Processor is an Intel Pentium III (Coppermine), 667MHz.
I don't know if it's related but since upgrading to 7.04 I occasionally see a corrupted screen in place of the Xubuntu login screen (although I can't see anything I can still enter my username and password and get to an uncorrupted XFCE desktop).
I have the same problem on Xubuntu 7.04, release version: when I start the Terminal from the Applications menu it does not appear; instead I am thrown out of XFCE and then back to the Xubuntu login screen. This was not a problem on Xubuntu 6.10.
The OS was upgraded from Xubuntu 6.10 via the Xubuntu Alternate CD, and all online updates have been applied since then. The graphics controller is reported by Sysinfo as "Intel Corporation 82810E DC-133 CGC [Chipset Graphics Controller] (rev 03) (prog-if 00 [VGA])". The Xorg version is reported as "7.2.0 (04 April 2007)". The kernel is reported as "2.6.20-15-generic (#2 SMP Sun Apr 15 07:36:31 UTC 2007)". Processor is an Intel Pentium III (Coppermine), 667MHz.
I don't know if it's related but since upgrading to 7.04 I occasionally see a corrupted screen in place of the Xubuntu login screen (although I can't see anything I can still enter my username and password and get to an uncorrupted XFCE desktop).