Problem with Terminal app on OS X Lion

Hi

I tried to change some preferences in my Terminal app (OS X Lion v10.7.2) and started having a weird problem. I even deleted the preferences plist file for Terminal but the problem is still there.

Example
I type CD \ and my prompt changes and then if I try to type CD \Users it says
cdcd: command not found
It is doubling up previous command for some reason.

I have linked to a screenshot so you can see that I mean because it's easier to see it than explain it:
http://www.iwebss.com/wp-content/uploads/2012/01/TerminalProblem.jpg
NOTE: My website/wordpress wont show the jpg properly, but it is there, you just need to download it.

Thanks

What happens when you type
cd /Users

Yes that works!
I was using \ instead of / (I come from Windows background lol).

Although is the \ some kind of escape character maybe that is causing that other weird behavior?

yep, \ would be an escape character.. so if you were doing something like changing to a directory called "My Temporary Files" it'd be

cd My\ Temporary\ Files