I can confirm the bug. Attached is my screenshot.
Killing gnome-panel restores a good panel fully functionally

** Attachment added: "panel.png"
   http://launchpadlibrarian.net/49978570/panel.png

** Tags added: confirmed

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Icons overlapped and "Turn-off" button on Desktop is not clickable
https://bugs.launchpad.net/bugs/585004
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