@all: I confirm this very annoying bug on ubuntu 9.10 (which is
corresponding to https://bugzilla.gnome.org/show_bug.cgi?id=560788 ). I
think importance should be increased as it is default behavior and it
frequently hides icons (Firefox download, mounting media..) which looses
the user. By the way, there are related bugs :
https://bugs.launchpad.net/ubuntu/+source/nautilus/+bug/32577 and
https://bugs.launchpad.net/ubuntu/+source/nautilus/+bug/12608

@knownuthin: the bug you describe is
https://bugs.launchpad.net/ubuntu/+source/nautilus/+bug/399974 and is
different from the one here.

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"Keep Aligned" right click menu option should not allow desktop icon overlap
https://bugs.launchpad.net/bugs/292465
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