Terminal Default Location at / instead of ~/

Question

hello guys i have been having this issue for quite some days alredy. i cehcked my terminal settings but i dont see any option in it. whenever i open a terminal it defaults at / when runnins as user. till now i have been able to add 'cd ~/' in the .bashrc file but that seems quite a dirty way of fixing this
this is my bashrc http://paste.pocoo.org/show/358546/
this is my passwd file:
root:x:0:0:root:/root:/bin/bash
bin:x:1:1:bin:/bin:/bin/false
daemon:x:2:2:daemon:/sbin:/bin/false
mail:x:8:12:mail:/var/spool/mail:/bin/false
ftp:x:14:11:ftp:/srv/ftp:/bin/false
http:x:33:33:http:/srv/http:/bin/false
nobody:x:99:99:nobody:/:/bin/false
dbus:x:81:81:System message bus:/:/bin/false
nico:x:1000:100:,,,:/home/arch:/bin/bash
avahi:x:84:84:avahi:/:/bin/false
usbmux:x:140:140:usbmux user:/:/sbin/nologin
hal:x:82:82:HAL daemon:/:/bin/false
lxdm:x:121:121:LXDE Display Manager user:/var/lib/lxdm:/sbin/nologin
and this is the inittab
http://paste.pocoo.org/show/358560/
Last edited by MystKid (2011-03-23 21:08:52)

Answer 1

and this is the lxdm.conf file
http://paste.pocoo.org/show/358567/