Thanks for the info. Removing all of ~/.gconf seemed a little drastic. I
removed the following which seems to have done enough to be useful:

rm -rf ~/.gconf/apps/gnome-settings*
rm -rf ~/.gconf/apps/panel
rm -rf ~/.gconf/apps/maximums
Maybe one other.

logged out & back in & things look good.

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switching to classic mode does not stop launcher
https://bugs.launchpad.net/bugs/322465
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