I am also hesitant to upgrade to Hardy at the moment as my system is running just as I like it however it is indeed quite unlikely that problem will be fixed in the 7.10 version of nautilus. If you haven't had a look at the instructions for recompiling nautilus you really should it is not difficult at all (if it was I probably wouldn't have figured out how to do it)
I am also hesitant to upgrade to Hardy at the moment as my system is running just as I like it however it is indeed quite unlikely that problem will be fixed in the 7.10 version of nautilus. If you haven't had a look at the instructions for recompiling nautilus you really should it is not difficult at all (if it was I probably wouldn't have figured out how to do it)