I still receive traffic looking for some of my older projects including the Terminal Here Plugin. For those who don’t know, Terminal Here Plugin was a contextual menu plugin for the Finder which allowed you to control/right-click a folder in Finder and use that to open a Terminal window in that location.
As of Snow Leopard, OS X 10.6, third party contextual menu plugins were essentially disabled for the Finder. As a result, even my poor little Terminal Here Plugin was left broken and wasted. But not to worry! If you have upgrade to Lion, it turns out that Apple has baked this feature in as a service.
Go to Preferences and open the Keyboard preferences. Choose the Keyboard Shortcuts tab and on the left choose Services. On the right, scroll down a bit to the Files and Folders section and look for New Terminal at Folder. Turn this option on. Optionally you may choose to turn on New Terminal Tab at Folder. You can also double click in the white space to the right of either option and choose a keyboard shortcut which will also perform the service. Once your options are set and items are checked, go to a Finder window and right click on a folder. Near the bottom you should see a Services menu item and from there should see either New Terminal at Folder or New Terminal Tab at Folder.