The patch attached to upstream bug report fixes the issue, I tested patch against gnome-utils 2.17.0-0ubuntu1.
Attaching upsteam patch for reference. ** Attachment added: "fix_diaglog_crasher.patch" http://librarian.launchpad.net/5507164/fix_diaglog_crasher.patch -- [Feisty 7.04] gnome-panel-screenshot don't save anymore https://launchpad.net/bugs/76563 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs