Hello,
I had the same problem.
I suspect that the best would be to enclose commands and args by doublequotes after the sh -c (eg. to have /bin/sh -c "/usr/bin/cb_console_runner /home/MyProject/TTTT/bin/Debug/TTTT"), but it's something that require modification of CB itself. So for the moment, I have done the following :
I have unchecked "pause when execution ends" in the properties of the project and this cause cb_console_runner not to be used. Then I replaced xterm by "konsole --noclose" to force a pause after execution (gnome console should have something equivalent (?)).
Now it works except that this time it is the arguments of my program that are not used (due to the same problem with sh -c). But as long as you do not have arg for your program, it should work.