--- lisp/term/ns-win.el.orig 2010-12-12 23:31:04.000000000 -0500
+++ lisp/term/ns-win.el 2010-12-12 23:32:00.000000000 -0500
@@ -785,7 +785,7 @@
"Do a `find-file' with the `ns-input-file' as argument."
(let ((f) (file) (bufwin1) (bufwin2))
- (setq f (file-truename (car ns-input-file)))
+ (setq f (file-truename (expand-file-name (car ns-input-file) command-line-default-directory)))
(setq ns-input-file (cdr ns-input-file))
(setq file (find-file-noselect f))
(setq bufwin1 (get-buffer-window file 'visible))
Here, the input filename is expanded according to the current working directory when Emacs was invoked. Since I'm no expert, I don't know if this breaks something else.