Howdy, The attached patch was committed upstream to fix this problem. It applies cleanly (each hunk is offset 25 lines). I build a new gnome-terminal package with it applied and verified that this problem was fixed.
-- Matt
=================================================================== RCS file: /cvs/gnome/gnome-terminal/src/terminal-window.c,v retrieving revision 1.128 retrieving revision 1.129 diff -u -r1.128 -r1.129 --- terminal-window.c 2006/07/10 18:32:21 1.128 +++ terminal-window.c 2006/07/24 22:12:11 1.129 @@ -1840,6 +1840,7 @@ TerminalScreen *screen, TerminalWindow *window) { + gboolean single; /* Called from terminal_notebook_move_tab() */ if (find_screen (window, screen) != NULL) { g_assert (terminal_screen_get_window (screen) == window); @@ -1871,6 +1872,11 @@ reset_tab_menuitems (window); update_tab_sensitivity (window); + /* The tab bar may have disappeared */ + single = g_list_length (window->priv->terms) == 1; + if (single) + terminal_window_set_size (window, window->priv->active_term, TRUE); + /* Close window if no more terminals */ if (window->priv->terms == NULL) gtk_widget_destroy (GTK_WIDGET (window));