I can confirm this behaviour in hardy. I don't know if it caused by
gnome menu, but sometimes the panel refuses to hide, sometimes it helps
to click/focus it and then move focus away. then the panel hides. but
sometimes it won't help. this should be fixed as this is basic optional
behaviour one would expect from all panels, docks, etc.

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Auto-hide in gnome-panel
https://bugs.launchpad.net/bugs/45974
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