Yes, "No Desktop Background" is just the tool-tip of the solid color
item. I'm still experiencing the bug with unity version 0.2.14-0ubuntu1
(tested on two installations, one of them just a week old). In addition,
the background selection tab in gnome-appearance-properties seems to
have problems drawing the image thumbnails (see attached screenshot).

** Attachment added: "Screenshot-1.png"
   http://launchpadlibrarian.net/51298855/Screenshot-1.png

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Unable to set a solid color as background
https://bugs.launchpad.net/bugs/594232
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