Failed to change directory $HOME ( (No such file or directory)

[jupiter <jupiter hce gmail com>]

Hi,

I am running nautilus on CentOS 6.2. If I run an application to click
it's icon in menu, it worked fine. but when I copy the application
icon to the desktop, and I clicked the desktop launcher, it had error
messages "Failed to change directory $HOME ( (No such file or
directory)", and another warning "(nautilus:12946): GLib-GIO-WARNING
**: couldn't find a terminal, falling back to xterm"

The errors were due to that menu application includes "Path=$HOME" and
"Terminal=1" in its menu desktop file. Since the same desktop file is
running fine by KDE file manager or thunar, not clear if the system is
missing something or not configure properly for nautilus.

Appreciate any tips for how to fix it.

Thank you.

Kind regards.