Hi,

I'm using Hardy too. I've done a routine system update today, and when I
turned on my computer later the "Update standard folders to current
language"  dialog box appeared, asking me to change my home/[user]
directory to /home/[user]/public. I had not changed any of my language
settings too.

Best regards,
G.

Ps.
Some of my icons  form the main menu changed, and some program settings under 
wine were lost too.

-- 
After upgrade, "Update standard folders to current language" threatens to 
rename your home folder
https://bugs.launchpad.net/bugs/209513
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