Finder Open iTerm Here: Drop a folder on this script (or just run it) to open a new iTerm window there. If the selected item isn't a folder, it will open the item's parent folder. Great when bound to a hotkey in FastScripts or added to the Finder Sidebar

finder-open-iterm-here.scpt

(* 
 * Finder Open iTerm Here - v1.0.2 - 4/14/2011
 * http://benalman.com/
 * 
 * Copyright (c) 2011 "Cowboy" Ben Alman
 * Dual licensed under the MIT and GPL licenses.
 * http://benalman.com/about/license/
 *)

tell application "Finder"
  set mySelected to get selection as list
  if (count of mySelected) is not 0 then
    set myItem to first item of mySelected
    if class of myItem is alias file then
      set myItem to original item of myItem
    end if
    if class of myItem is in {file, document file, internet location file} then
      set myItem to container of myItem
    end if
  else if the (count of window) is not 0 then
    set myItem to folder of the front window
  else
    set myItem to path to desktop folder
  end if
  my open_iTerm(myItem)
end tell

on open these_items
  my open_iTerm(first item of these_items)
end open

on open_iTerm(myItem)
  set myPath to quoted form of POSIX path of (myItem as string)
  
  tell application "iTerm"
    activate
    if the (count of terminal) is 0 then
      set myTerm to make new terminal
    else
      set myTerm to the current terminal
    end if
    tell myTerm
      launch session "Default Session"
      tell the last session to write text "cd " & myPath
    end tell
  end tell
end open_iTerm

Also, to hide the applescript app from the dock.. add this to the app's Contents/Info.plist

<key>LSUIElement</key>
<string>1</string>

just above the line that reads as <key>WindowState</key>