Interestingly, the bleeding edge version of pcmanfm happily opens lxterminal with no problem and the preferences show NOTHING for terminal. This is to say it works fine out of the box. I'd call this fix committed.
$ apt-cache policy pcmanfm lxterminal pcmanfm: Installed: 1.0.1+bzr801+201210081425~quantal1 Candidate: 1.0.1+bzr801+201210081425~quantal1 Version table: *** 1.0.1+bzr801+201210081425~quantal1 0 500 http://ppa.launchpad.net/lubuntu-dev/lubuntu-daily/ubuntu/ quantal/main i386 Packages 100 /var/lib/dpkg/status 1.0.1-0ubuntu1 0 500 http://us.archive.ubuntu.com/ubuntu/ quantal/universe i386 Packages 1.0.1-0ubuntu1~ppa1 0 500 http://ppa.launchpad.net/lubuntu-dev/staging/ubuntu/ quantal/main i386 Packages lxterminal: Installed: 0.1.12~bzr580+201210071556~quantal1 Candidate: 0.1.12~bzr580+201210071556~quantal1 Version table: *** 0.1.12~bzr580+201210071556~quantal1 0 500 http://ppa.launchpad.net/lubuntu-dev/lubuntu-daily/ubuntu/ quantal/main i386 Packages 100 /var/lib/dpkg/status 0.1.11-4ubuntu2 0 500 http://us.archive.ubuntu.com/ubuntu/ quantal/universe i386 Packages -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/975152 Title: Execute in terminal not working To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/pcmanfm/+bug/975152/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs