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The integrated netbeans terminal is not using cygwin's bash.exe, but instead it uses sh.exe. The problem with sh.exe is it won't show the current file path when changing directories, so you can never quickly see where your working directory is.
Definitely not a P1.
http://hg.netbeans.org/cnd-main/rev/b52d6a5c9fe1
Integrated into 'main-silver', will be available in build *201308300001* on http://bits.netbeans.org/dev/nightly/ (upload may still be in progress) Changeset: http://hg.netbeans.org/main-silver/rev/b52d6a5c9fe1 User: Andrew Krasny <akrasny@netbeans.org> Log: FIXED: Bug #213470 - Terminal not working properly with Cygwin WORKAROUND: Bug #207965 - Terminal incorrectly displays prompt string