bug#18037: 24.3; term.el cannot track non-ascii directories

[Eli Zaretskii <eliz@gnu.org>]

> From: Johan Claesson <johanclaesson@bredband.net>
> Date: Wed, 16 Jul 2014 20:09:48 +0200
> 
> --- a/term.el   2014-07-16 19:22:09.348823919 +0200
> +++ b/term.el   2014-07-16 19:25:33.920825786 +0200
> @@ -3424,7 +3424,7 @@
>                            (substring string (1+ first-colon) second-colon))))
>            (setq term-pending-frame (cons filename fileline))))
>         ((= (aref string 0) ?/)
> -        (cd (substring string 1)))
> +        (cd (string-as-multibyte (substring string 1))))
>         ;; Allowing the inferior to call functions in Emacs is
>         ;; probably too big a security hole.
>         ;; ((= (aref string 0) ?!)

string-as-multibyte is not right.

> (Motivation: in term-exec-1 the coding-system-for-read is set to 'binary
> with the following comment:
> 
>         ;; The process's output contains not just chars but also binary
> 	;; escape codes, so we need to see the raw output.  We will have to
> 	;; do the decoding by hand on the parts that are made of chars.
> 
> I think term-command-hook is one place where such decoding is needed.)

Indeed; but string-as-multibyte is not the way to decode the string.
You need to use decode-coding-string and locale-coding-system.