Note that there are several different variations on this error dialog, so please copy the entire text into this bug to confirm that you are experiencing the same problem.
I saw the "Did not receive a reply" variant of this when testing an 8.04 release candidate under KVM. I checked, and gnome-settings-daemon was in fact running. I attribute this to a race condition caused by kvm, particularly as there was increased load on the system during this installation, and I did not see the problem in other tests under kvm.
Note that there are several different variations on this error dialog, so please copy the entire text into this bug to confirm that you are experiencing the same problem.
I saw the "Did not receive a reply" variant of this when testing an 8.04 release candidate under KVM. I checked, and gnome-settings- daemon was in fact running. I attribute this to a race condition caused by kvm, particularly as there was increased load on the system during this installation, and I did not see the problem in other tests under kvm.