The problem is still there.
In the attached screenshot (usr-share-vnc.png) nautilus shows the contents of 
/usr/share/vnc after "flipping the triangles". When I then do File > New Window 
and then double click on vnc, nautilus hangs - the screenshot was taken after 1 
minute!
I added testing with 9.04 to my todo list.

** Attachment added: "Screenshot showing nautilus to hang"
   http://launchpadlibrarian.net/21532299/usr-share-vnc.png

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Nautilus is slow and CPU hungry over sftp
https://bugs.launchpad.net/bugs/292707
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