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For this "nautilus-open-terminal" package needs to be installed.
sudo apt-get install nautilus-open-terminal
Or,
Synaptic package manager can be used to install this package:
Then, logout and log back again on Ubuntu. Now, "Open in Terminal" option is available, when a folder is "right-clicked"
BTW,
For windows, to launch "Command promt" by right clicking on Explorer, use this Microsoft Power Toy, "Open Cmd Window Here"
This works for Ubuntu 9.10 Karmic Koala as well.

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