OK. I figured it out. It turns out that I had an old file:
/usr/local/share/dbus-1/system-services/org.freedesktop.ConsoleKit.service

which takes precedence over:
/usr/share/dbus-1/system-services/org.freedesktop.ConsoleKit.service
(not /usr/share, not usr/share/local)

The old file was wrong. Probably a leftover my old install of console-
kit from source which I used to try to fix this problem previously.

Sorry for the noise -- Closing this ticket...

** Changed in: policykit-1 (Ubuntu)
       Status: Incomplete => Invalid

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[Karmic] Shutdown/restart from gnome menu does not work
https://bugs.launchpad.net/bugs/501294
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