Open iTerm Here

gistfile1.as

(*
  iTerm Here - Michael "Doc" Norton

  Version 0.1.1

  A Button for opening the iTerm.app and CD-ing to the location of the selected files or folder.
  Inspired by the workflow from Jeroen Leenars, but using iTerm instead of Terminal.
  Additional contributions to concept (and code) from:

    Felipe Meneguzzi
      See http://fmeneguzzi.blogspot.com/2009/09/open-iterm-here.html for more information.

    Marc Liyanage
      See http://putnamhill.net/applescript/open-iterm-here for more information.
*)

on run
  tell application "Finder"
    try
      set this_folder to (the target of the front window) as alias
    on error
      set this_folder to startup disk
    end try
    my open_item(this_folder)
  end tell
end run

on open these_items
  repeat with i from 1 to the count of these_items
    set this_item to item i of these_items
    my open_item(this_item)
  end repeat
end open

on open_item(this_path)
  set thePath to (quoted form of POSIX path of this_path)
  set iTermRunning to isAppRunning("iTerm")

  tell application "iTerm"
    if iTermRunning then
      set myTerm to (make new terminal)
      tell myTerm to launch session "Default Session"
    else
      activate
      set myTerm to first terminal
      tell myTerm to activate current session
    end if
    tell myTerm
      tell the last session
        write text "cd " & thePath & "; clear"
      end tell
    end tell
  end tell
end open_item

on isAppRunning(app_name)
  tell application "System Events" to set app_list to every application process whose name is app_name
  if the (count of app_list) > 0 then
    return true
  else
    return false
  end if
end isAppRunning

You can change the first part to make it work in search folders such as Lion's "All My Files" :

on run
    tell application "Finder"
        try
            set this_folder to (the target of the front window) as alias
        on error
            try
                set this_folder to container of (selection as alias) as alias
            on error
                set this_folder to path to home folder as alias
            end try
        end try
        my open_item(this_folder)
    end tell
end run