This function will open a terminal window with the working directory set to the location of the file being edited.

1. Be sure to replace "Terminal" with "gnome-terminal", "konsole", or "xterm" if you don't use XFCE's Terminal program.
2. Also check that "--working-directory" is the correct option for setting the working directory of your terminal program.

Code:

function openTerminalHere()
        terminalString = "Terminal"
        pathString = "~"
        if buffer.filename then
                pathString = buffer.filename:match(".+/")
        end
        io.popen(terminalString.." --working-directory="..pathString.." &")
end

Assign a key binding to trigger the function. Example:

keys['ctrl+T'] = openTerminalHere