We also experience this problem.

It seems to be caused by WebStart not being able to handle locally named
Desktop folders.

For example, with the Hungarian local in Jaunty, the Desktop folder is
named Asztal.

If you create a link named as Desktop in your home folder and the link
is named Desktop, the Webstart icons will be created correctly.

-- 
Java webstart (sun-java6) are "Unable to create shortcut for MyApp(hostname)"
https://bugs.launchpad.net/bugs/320362
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