Description of problem:
While I was running the desktop validation testing for Xfce (with F16 Final TC2) I noticed that the 'Open in Terminal' option of the directory menu does not work.
Version-Release number of selected component (if applicable):
Steps to Reproduce:
1. add directory menu plugin to panel if you haven't already
2. click it, select any folder
3. click 'Open in Terminal'
desired folder should opened in terminal
When starting xfce4-panel from a console you will see the output
'Unknown option "home liveuser"'
It seems like the panel just calls the terminal emulator and the path, while for Xfce's Terminal it should be 'terminal --working-directory <path>'. So this might actually be a configuration problem in exo.
Proposing this bug to block F16-accepted because it violates the following Release critieria  "All applications listed under the Applications menu or category must withstand a basic functionality test and not crash after a few minutes of normal use."
Sorry, wrong release criteria. I meant: "All elements of the default panel (or equivalent) configuration in all release-blocking desktops must function correctly in common use"
Guess there is not much we can do, it has been reported upstream without success: https://bugzilla.xfce.org/show_bug.cgi?id=8018
Ok, fix from upstream coming your way...
xfce4-panel-4.8.6-2.fc16 has been submitted as an update for Fedora 16.
'blocker' bug in non-blocking desktop -> +1 nth (per comment #2).
xfce4-panel-4.8.6-2.fc16 has been pushed to the Fedora 16 stable repository. If problems still persist, please make note of it in this bug report.