gconftool-2 --type=Boolean --set /apps/nautilus/preferences/always_use_location_entry true
The revert back to Display location in button format do.
gconftool-2 --type=Boolean --set /apps/nautilus/preferences/always_use_location_entry false
And if you hadn't already done so: Right click add open Terminal in current Directory option.
sudo apt-get install nautilus-open-terminal