gistfile1.el

; I use customize for this:
'(ssh-directory-tracking-mode t)

(eval-after-load 'ssh
  '(progn
     (add-hook 'ssh-mode-hook
               (lambda ()
                 (shell-dirtrack-mode t)
                 (setq dirtrackp nil)
                 (setq show-trailing-whitespace nil)))

     (defadvice ssh (around ssh-always-local first activate)
       (let ((default-directory "~/"))
         ad-do-it))))

(eval-after-load 'shell
    '(progn
       (defadvice comint-send-input (before expand-input activate)
         "Expand input before sending"
         (expand-abbrev))
       (add-hook 'shell-mode-hook
                 (lambda ()
                   (ansi-color-for-comint-mode-on)
                   (setq shell-dirtrackp nil)
                   (dirtrack-mode t)
                   (setq show-trailing-whitespace nil)))))