Confirmed for me on Ubuntu 9.04, package version: 1:2.26.2-0ubuntu2
Arch: AMD64
It is a low priority bug, but it is annoying !
I found two workarounds:
1) Close the nautilus window and open another window...
2) Close the tree view (click on the small cross), then display it again,
using F9 or via the menu window:
view->lateral panel (I'm using the french translation, so it is:
Affichage->Panneau latéral)
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Tree view freezes after expanding and collapsing
https://bugs.launchpad.net/bugs/313353
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