Can't restore folders from trash

[NoBugs!]

1) Create a folder in home, a subdirectory, and "important file" in subdirectory. (~/untitled folder/subfolder/importantfile)
2) Delete (trash) untitled folder.
3) Create the home/untitled folder directory again.
3) From the trash bin, select "restore".
After selecting "Merge", it gives an error message, with detail "Items in the trash may not be modified".

ProblemType: Bug
DistroRelease: Ubuntu 12.10
Package: nautilus 1:3.5.90.really.3.4.2-0ubuntu2
ProcVersionSignature: Ubuntu 3.5.0-16.25-generic 3.5.4
Uname: Linux 3.5.0-16-generic x86_64
NonfreeKernelModules: wl
ApportVersion: 2.5.3-0ubuntu1
Architecture: amd64
Date: Sat Sep 29 19:36:35 2012
GsettingsChanges:
 b'org.gnome.nautilus.window-state' b'geometry' b"'965x555+37+157'"
 b'org.gnome.nautilus.window-state' b'sidebar-width' b'210'
InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Beta amd64 (20120301)
ProcEnviron:
 TERM=xterm
 PATH=(custom, no user)
 LANG=en_US.UTF-8
 SHELL=/bin/bash
SourcePackage: nautilus
UpgradeStatus: Upgraded to quantal on 2012-09-15 (14 days ago)

[Launchpad Janitor (janitor)]

Status changed to 'Confirmed' because the bug affects multiple users.

[Timothy Arceri (t-fridey)]

Thanks for the bug report. Can also report it upstream in the Gnome bug tracker: https://bugzilla.gnome.org/ and link it using the "Also affect project" button