Follow the procedure for restoring the default panel.
http://www.saifur-rahman.com/2008/12/restoring-default-ubuntu-panel/

The following ran as sudo worked:

gconftool-2 --shutdown
rm -rf ~/.gconf/apps/panel
pkill gnome-panel

-- 
Gnome panels continuously crash, then reload
https://bugs.launchpad.net/bugs/465464
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