That's not a bug, that's a feature.
If you want to turn it off, please follow one of the following instructions:
http://mozillalinks.org/wp/2008/06/9-tweaks-for-firefox-3s-location-bar/
http://www.labnol.org/software/browsers/prevent-firefox-showing-bookmarks-address-location-bar/3636/
** Changed in: firefox-3.0 (Ubuntu)
Status: Confirmed => Invalid
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Firefox history
https://bugs.launchpad.net/bugs/202639
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