Setting current directory: no such file or directory

[RjjdBae]

In a shell window, my `pwd` is /a/b/c/d.
I then rename directory "c":
cd ../..
mv c x

Then every time I enter a <RET> or execute shell-command, I get
"Setting current directory: no such file or directory, ...".  The
message lists the path /a/b/c/d/e/f, i.e. a directory below the current
one, where I had been.

I can change the value of default-directory by executing the emacs
command "cd", but the problem persists.

Any ideas on what to set?

I am
GNU Emacs 21.2.1 (i386-redhat-linux-gnu, X toolkit, Xaw3d scroll bars)
of 2003-02-20 on porky.devel.redhat.com

(Thanks for all past help!)
Regards, Bob