I can confirm this bug as well, fully updated Gutsy,  Nautilus v 2.19.4;
the documents folder is represented twice in the places menu on the Menu
Bar.  No bookmarks have been created and it does reproduce itself with a
new user being created as well.

Regards, 
Justin

** Changed in: gnome-panel (Ubuntu)
       Status: Incomplete => Confirmed

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Duplicated entries in Places Menu
https://bugs.launchpad.net/bugs/122602
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