The same happened to me in a win stadnallone install on xp, vista and 7 and 
ubuntu. Main thing, scale bar seem not to work well on 1.72. Nevertheless, I 
check if I coul use the measure tool and make a reprojection of som layers in 
UTM wgs84  14N and both procedures work ok. Then, Qgis recognizes my  CRS, but 
the scale bar does not work. I get around this by getting rid off the scale 
bar. Not a total solution but it works. and the only thing is to get use to 
work without the scale bar in the data frame.

Hope it helps

Gerardo Jiménez Delgado
Instituto de Investigaciones Antropológicas
Universidad Nacional Autónoma de México
Ciudad Universitaria s/n
Coyoacan 04510
Mexico City
Mexico

56 22 95 16

> Date: Tue, 29 Nov 2011 07:51:27 +0100
> From: [email protected]
> To: [email protected]
> Subject: [Qgis-user] Scale bar on degrees with project CRS on ED50 UTM31
> 
> Using 1.7.2, the scale bar is on degrees while project and
> layer CRS are projected. See screenshot here:
> https://sites.google.com/site/filestemp2/home/scalebar.jpeg?attredirects=0
> 
> Agus
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