OK. This one I fixed, once again. This time the problem was that somehow a java script was added to my Preferences>Users & Groups>Login Items. The java script was opening up Terminal. Not sure why it got added or how, but I deleted the java script and all it well.
I received one response but...
This worked initially. But yesterday, Terminal started opening at login again.
Operating System: OSX 10.7.2.
I checked and confirmed the following:
1) My com.apple.Terminal.savedState folder is empty and locked.
2) The Terminal app is NOT checked to 'Open at Login'
3)...