#76 Invoking new shell does not start properly in Virtualbox

[karatedog]

Environment:
Virtualbox, Debian 6, within a shared folder (Virtualbox's feature)

I use Guake, but I have successfully reproduced it with gnome-terminal.
If I navigate to a subfolder of the shared folder of Virtualbox (ie: /media/sf_VMShare/foo), and invoke a new shell with Ctrl+N (which should start in the same directory as invoked from), the shell does not start, I get a cursor blinking in the upper left corner. When I press Ctrl+C, the shell starts. but the prompt of the actual folder name is a dot ".", although I'm in the proper folder, 'ls' shows the proper files. 'cd ..' does not work

Can anyone reproduce it within Virtualbox, to clarify if the problem is in my setup?