the issue described there seems to be bug #136837 which has been fixed
in hardy, if you still have an issue in hardy better to open a new bug
now
** Changed in: gnome-applets (Ubuntu)
Status: Triaged => Fix Released
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[GUTSY] Regression - Volume Control using gnome panel applet and keyboard
shortcut alternates mute / % volume during sliding
https://bugs.launchpad.net/bugs/126333
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