What’s best is that it’s the perfect answer for the ‘opening new tab in same directory I was working in for mac‘ problem. This is must have feature for anyone who’s used to working on a *nix platform. Here’s how to enable it – http://code.google.com/p/iterm2/issues/detail?id=1217
I’m used to splitting panes horizontally and vertically in Ubuntu. So for me, I needed something that does the same for mac.