Comment 9 for bug 511511

@JC

I personally use the same (10.04 64 bit) and have done it on 32 bit machines so we'll see if we can get it to work for you too. I realized that the usage of quotation marks in my post wasn't very clear. Start with the first step in my post above again. Then here's what's inside my /usr/share/applications/nautilus-browser.desktop file so you can just cut and paste:

[Desktop Entry]
Name=File Browser
Comment=Browse the file system with the file manager
TryExec=nautilus
Exec=nautilus --browser .
Icon=system-file-manager
Terminal=false
StartupNotify=true
Type=Application
NoDisplay=false
Categories=GNOME;GTK;System;Utility;Core;
OnlyShowIn=GNOME;
X-GNOME-Bugzilla-Bugzilla=GNOME
X-GNOME-Bugzilla-Product=nautilus
X-GNOME-Bugzilla-Component=general
X-GNOME-Bugzilla-Version=2.30.1
X-Ubuntu-Gettext-Domain=nautilus

Finish up with Step 3 again. Make sure that you haven't done anything else (such as anything mentioned in posts prior to mine - no offense) or else it likely won't work as I've found. Hope this helps.