Jut thought this might prove useful for some folks. I know I borrowed this code from somewhere but, uncharacteristically, I didn't paste the URL in with the code, so I can't credit the source (I recall hacking the code, but I still can't claim credit).
If you're running OS X and you open a new terminal window, it's handy if it opens in the same directory as the one you're currently working in. The following script allows this (if you know of a better way, please let me know).
# Open a new terminal in the cwd
set thePath to "$CWD"
set myPath to (POSIX file thePath as alias)
tell application "Terminal"
do script with command "cd \"" & thePath & "\""