By default, Terminal opens with your user folder as the current directory. Over the years, there have been several ways to make Terminal open in a different folder; OS X Lion makes doing so much easier.
Open the Keyboard pane in System Preferences and then click the Keyboard Shortcuts tab. Find the Services section in the left column, and then scroll through the column on the right until you find Files And Folders. There, you’ll see a New Terminal At Folder service. Place a checkmark next to it; if you like, you can also assign it a keyboard shortcut.
That done, go to the Finder and Control-click (or right-click) on any folder. Open the Services submenu; your newly enabled service should appear at the bottom of the list. Select it, and Terminal should open with your selected folder as the current directory. Note that this won’t work on folders in the Finder sidebar or on aliases; in those cases, you must select an actual folder or file.
Lion has a service that lets you select a folder in the Finder and then open it in Terminal