How can i reset my Terminal?

Goto your HomeFolder -> Library -> Preferences and delete the file : com.apple.terminal.plist

That should reset the settings on your Terminal

Since you have mentioned that running pwd shows a path not mentioning server, I believe you are mistaking server for being the directory when it is actually the hostname.

OS X Server will change your hostname (by default) to server.<name>.private, so Terminal will show server:~ username$ (in Bash with the default prompt).

To change the hostname, you can use the following command:

sudo scutil --set HostName yourhostname

^{Replace yourhostname with your preferred hostname}