@Pierre (p-lebedel):

I don't know how things behave in case of encrypted home folders.
Though, if the default permissions of /home are drwxr-x--x (0711), then
the bug triggers.

Changing permissions to drwxr-xr-x (0755) is perfectly fine if you can
live with it. However, in some cases (shared environments, server setups
etc.) the administrator will want to tighten the permissions to 0711.

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to gnome-terminal in Ubuntu.
https://bugs.launchpad.net/bugs/1074539

Title:
  Opening Preferences shows read error for home

Status in “gnome-terminal” package in Ubuntu:
  Confirmed

Bug description:
  When I open the preferences dialog of gnome-terminal I get a popup
  window (see screenshot) with the error message "Could not read the
  contents of home. Permission denied." If I acknowledge the error with
  a click on OK everything seems to work fine, nonetheless.

  One cause for the error message is clear: It's the permissions of
  /home which I always set to 0711 on shared computers. The error
  message does not appear when I change permissions to 0755.

  I am afraid this error might very well be not a problem of gnome-
  terminal but of a library or any other shared package. I thought I
  have seen it appear in other programs too but I could reproduce it
  only in gnome-terminal. Thus, I hope that reporting it against gnome-
  terminal at least might help others find this bug. And maybe the
  developers of gnome-terminal can help to clarify the actual causes.

  ProblemType: Bug
  DistroRelease: Ubuntu 12.04
  Package: gnome-terminal 3.4.1.1-0ubuntu1
  ProcVersionSignature: Ubuntu 3.2.0-32.51-generic-pae 3.2.30
  Uname: Linux 3.2.0-32-generic-pae i686
  ApportVersion: 2.0.1-0ubuntu14
  Architecture: i386
  Date: Sat Nov  3 01:52:39 2012
  ExecutablePath: /usr/bin/gnome-terminal
  InstallationMedia: Edubuntu 10.04 "Lucid Lynx" - Release i386 (20100429.1)
  SourcePackage: gnome-terminal
  UpgradeStatus: Upgraded to precise on 2012-10-30 (3 days ago)

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