If I open a new tab and change the working directory to /home/davidz/Hacking then gnome-terminal will cd to the directory when creating a new tab. Useful feature. However, if symlinks are involved, e.g.

 /home/davidz/Hacking -> /localhome/davidz/Hacking

then a new tab will have the working directory /localhome/davidz/Hacking. This is annoying and probably not intended.

I observed this on Fedora 14 (gnome-terminal-2.32.0-1.fc14.i686, vte-0.26.1-1.fc14.i686).

(Background: /home is on an encrypted partition and / is not. I have these symlinks set up to avoid slowness when building code.)