Forgot, I'm running 10.10 on x86_64 quad core.
I followed the suggestion in bug 545521 and removed everything under ~/.gconf/apps/panel/general and ~/.gconf/apps/panel/toplevels, rebooted and then everything worked (but all customization was lost of course).
Attaching the removed files in case they are of any interest.
Forgot, I'm running 10.10 on x86_64 quad core. apps/panel/ general and ~/.gconf/ apps/panel/ toplevels, rebooted and then everything worked (but all customization was lost of course).
I followed the suggestion in bug 545521 and removed everything under ~/.gconf/
Attaching the removed files in case they are of any interest.