In Ubuntu 11.04 which had Gnome 2.x it was easy to find a file/folder in a nautilus window by just typing it's name in the window and Nautilus would highlight the file. If while typing a mistake was done then BACKSPACE would erase one character and after that typing can resumed for Nautilus to highlight the correct file/folder as we keep typing it's name. Also while typing if ESC key is pressed then all the typed letters were erased and new file could be located by just typing it's name in the window.
The above functionality is broken in the following manner in Ubuntu 11.10.
1) Typing the name of the file will locate it but if backspace is pressed to correct any typing error it will take you previous folder which is not supposed to happen while typing in the Nautilus window.
2) If the user somehow successfully locates the required file by typing it's name but later wants to locate another file in the same window then ESC key will not clear the previously typed file/folder name and hence searching/locating a new file/folder in the same nautilus window cannot be done unless it's opened again.
This was one of the good features of Nautilus which wasn't available in many other file browsers on OSes like windows.
Thank you for your bug, seems similar to bug #857710