Press CTRL+T on Desktop blanks out Desktop and opens a new tab

[Kurt Zitzelman]

Either using CTRL+T going to File -> New Tab from Desktop makes the Desktop unusable by whiting out the background, covering the Icons and opening a new tab. The Desktop cannot be restored without Logging out and Logging back in or a Restart. File option shouldn't even be available from the Desktop, there's no need for it. Pic attached

ProblemType: Bug
DistroRelease: Ubuntu 11.10
Package: nautilus 1:3.1.4-0ubuntu4
ProcVersionSignature: Ubuntu 3.0.0-9.15-generic 3.0.3
Uname: Linux 3.0.0-9-generic i686
Architecture: i386
Date: Wed Aug 31 13:09:09 2011
InstallationMedia: Ubuntu 11.10 "Oneiric Ocelot" - Alpha i386 (20110705.1)
ProcEnviron:
 PATH=(custom, no user)
 LANG=en_US.UTF-8
 SHELL=/bin/bash
SourcePackage: nautilus
UpgradeStatus: No upgrade log present (probably fresh install)

[Launchpad Janitor (janitor)]

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