Appearance panel doesn't show correct preview when set to "Center" or "Tile"

[Sean Murphy]

When selecting a new wallpaper, you can adjust how the wallpaper displays on the screen using the Appearance dialog.
The Appearance panel shows a monitor and scales the wallpaper to the monitor so you can see how your desktop will look without minimizing everything... except, it doesn't.
When setting a wallpaper to either Tile, or Center, the preview in the monitor is completely wrong. Instead of showing a preview scaled to the size of the preview monitor it displays the full-size wallpaper on the preview monitor.

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: gnome-control-center 1:3.4.1-0ubuntu1
ProcVersionSignature: Ubuntu 3.2.0-24.37-generic-pae 3.2.14
Uname: Linux 3.2.0-24-generic-pae i686
ApportVersion: 2.0.1-0ubuntu7
Architecture: i386
Date: Thu May 3 10:02:38 2012
ExecutablePath: /usr/bin/gnome-control-center
InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Beta i386 (20120416)
ProcEnviron:
 PATH=(custom, no user)
 LANG=en_US.UTF-8
 SHELL=/bin/bash
SourcePackage: gnome-control-center
UpgradeStatus: No upgrade log present (probably fresh install)
XsessionErrors:
 (compiz:1701): GConf-CRITICAL **: gconf_client_add_dir: assertion `gconf_valid_key (dirname, NULL)' failed
 (gnome-settings-daemon:1685): libappindicator-CRITICAL **: app_indicator_set_label: assertion `IS_APP_INDICATOR (self)' failed
 (gnome-settings-daemon:1685): libappindicator-CRITICAL **: app_indicator_set_label: assertion `IS_APP_INDICATOR (self)' failed
 (gnome-settings-daemon:1685): print-notifications-plugin-CRITICAL **: gsd_print_notifications_plugin_finalize: assertion `plugin->priv != NULL' failed
 (gnome-settings-daemon:5238): GnomeDesktop-WARNING **: Timed out waiting for GL_MAX_TEXTURE_SIZE helper
usr_lib_gnome-control-center:
 activity-log-manager-control-center 0.9.4-0ubuntu3
 deja-dup 22.0-0ubuntu2
 gnome-bluetooth 3.2.2-0ubuntu5
 indicator-datetime 0.3.94-0ubuntu2

[Jeremy Bícha (jbicha)]

It works if the background image is very low resolution. Try this attached image.

I'm reassigning since GNOME dropped the UI for settings zoom/scale/title in their Background panel, but it still exists in the Unity Appearance panel.