I'd like to add that

1) This bug can easily be reproduced by means of a standard Ubuntu Live
CD. After booting the Live CD check that opening the preferences works
without problems. Then enter the command(s)

  ls -od /home; sudo chmod 711 /home; ls -od /home

which should show (apart from the date)

  drwxr-xr-x 1 root 60 Nov  6  2012 /home
  drwx--x--x 1 root 60 Nov  6  2012 /home

Open preferences again and it will show the error message "Could not
read the contents of home. Permission denied."

2) I am sorry, but, indeed this bug must be caused by a component that
gnome-terminal is using and not by gnome-terminal itself. In the
meantime I found another program that shows the same error
(soundconverter) and there are probably more.

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https://bugs.launchpad.net/bugs/1074539

Title:
  Opening Preferences shows read error for home

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