Here is a screenshot demonstrating this bug.
** Attachment added: "overlapping.png"
http://launchpadlibrarian.net/28208606/overlapping.png
** Also affects: nautilus
Importance: Undecided
Status: New
** Summary changed:
- Problem with name folders
+ Desktop item labels expand and obscure other desktop items on mouseover
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Desktop item labels expand and obscure other desktop items on mouseover
https://bugs.launchpad.net/bugs/386436
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