It does work after rebooting assuming that your folder is synchronized
and you don't have a high network traffic. From my point of view
ubuntuone-preferences crashes while waiting for some dbus response from
the ubuntuone daemon that takes a lot of time to get the response from
the server.

Let me use the nightly build to see how it works.

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https://bugs.launchpad.net/bugs/690145

Title:
  ubuntuone-preferenes fails to start when network load is high

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