Still experiencing same problem, fully updated.

Wallpaper shows up randomly when the bug happens, i.e. it may or may not show 
up whilst nautilus is "erroring" (but no icons).
Wallpaper always shows up along with icons when error stops. 

Error usually stops at some random point after login, anything from 10
seconds to 2 hours according to experience.

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nautilus unable to start on login
https://bugs.launchpad.net/bugs/329146
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