Index: configure.ac
===================================================================
--- configure.ac	(revision 394)
+++ configure.ac	(working copy)
@@ -61,7 +61,7 @@
 	gtksourceview-2.0 >= 2.4.0
 	gedit-2.20 >= 2.24.0
 	libglade-2.0 >= 2.4.0
-	gnome-vfs-2.0 >= 2.13.4
+	gio-2.0 >= 2.16.0
 ])
 GEDIT_LIBS="${GEDIT_LIBS}"
 AC_SUBST(GEDIT_LIBS)
Index: plugins/terminal/terminal.py
===================================================================
--- plugins/terminal/terminal.py	(revision 394)
+++ plugins/terminal/terminal.py	(working copy)
@@ -28,8 +28,8 @@
 import vte
 import gconf
 import gettext
-import gnomevfs
 import os
+import gio
 from gpdefs import *
 
 try:
@@ -238,7 +238,9 @@
             return None
         uri = doc.get_uri()
         if uri is not None and gedit.utils.uri_has_file_scheme(uri):
-            return os.path.dirname(gnomevfs.get_local_path_from_uri(uri))
+            gfile = gio.File(uri)
+            directory = gfile.get_parent()
+            return os.path.dirname(directory.get_path())
         return None
 
     def on_panel_populate_popup(self, panel, menu):
