I'm having an interesting issue with XFCE Terminal/Gnome Terminal (not reproducible in XTerm), where executing bash or logging in using login or su will open a new Bash instance inside a Bash instance as shown:
_randall@manbearpig:/home/randall[root@manbearpig randall]#
Ctrl+D and exit both exit back to the original bash instance. How do I make these terminal emulators behave like Xterm, which opens the new user account or bash instance over the original one?

bash,loginorsuare SUPPOSED to start a new shell. What is it that you expect to happen? Because, I cannot see where your system is doing anything wrong. if you want to open another TERMINAL program, then typegnome-terminalor whatever the program name is. Bash is a shell, where you type commands, gnome-terminal, xterm, konsole (and lots more) are just terminal emulators which show the output of a shell (bash/sh/dash/ksh/csh/zsh...) – lornix Jul 9 '12 at 11:38