the default gnome2 launcher for multi-gnome-terminal 1.5.1 has NO_XALF prepended, which results in FILE NOT FOUND error. However, installing xalf conflicts with gnome-session
Rethorical question: why use multi-gnome-terminal in Gnome 2? Gnome 2 defaults to "gnome-terminal".
It should be fixed now for 1.5.2, thanks for your patience :)