There are a couple of issues. First, IPython 2.0 doesn't work with the IPython Notebook
plugin. This was reported 3 months ago, and the developer hasn't done anything about it yet.
Second, even if you hadn't upgraded IPython, you're entering open ipython notebook
in the wrong location. You should be typing that into the Command Palette (CtrlShiftP on Windows/Linux, ⌘⇧P on OS X), not the Sublime console (Ctrl`).
So, there are two options. The first is to downgrade your version of IPython back to the one you were using before, and everything will work again. The downside of this is you won't have access to the latest features of IPython, which may or may not be an issue depending on your workflow.
The second option is to run IPython via the SublimeREPL
plugin. One nice thing about this is the ability to see images as you generate them, as they pop up in new windows. Downsides include the current lack of ability to connect to running notebook servers, the fact that you can't save your work as an .ipynb
file, and the different way of presenting data - it's more line-based, not cell-based, so for example if I define a loop:
In [1]: for i in range(10):
...: print(i)
and want to modify and rerun it later, using the arrow keys to go back through the history only goes line-by-line, not cell-by-cell. That means you'd have to rewrite your loop each time you want to run it. I mainly use SublimeREPL/IPython to test snippets of code as I'm writing to make sure they do what I want them to.