Tested on Feisty and Gutsy: the media:/ in the file picker has been changed to /media/ so it appears that the bug has been fixed. However, try something in remote:/ (ignoring the fact, it's a silly thing to do) which turns remote:/localserver into /localserver, and so the bug is still present.
Tested on Feisty and Gutsy: the media:/ in the file picker has been changed to /media/ so it appears that the bug has been fixed. However, try something in remote:/ (ignoring the fact, it's a silly thing to do) which turns remote:/localserver into /localserver, and so the bug is still present.