I confirm this is still an issue on Ubuntu 9.04, fully up-to-date.

This has been a problem since I upgraded from 8.10, why is it not
getting attention?

To re-iterate:
System > Preferences > Pop-Up Notifications does not do anything. The Theme nor 
the Position settings work. They do nothing, not even a mention of an error in 
any logs.

For me, a single display user, this is just annoying.
For others [see above], using multi-display, this is a show stopper!

Please, can it get some attention finally?

** Package changed: notification-daemon (Ubuntu) => notify-osd (Ubuntu)

** Changed in: notify-osd (Ubuntu)
       Status: New => Confirmed

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notification-daemon does not respect gconf preferences
https://bugs.launchpad.net/bugs/353921
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