Forgot, I'm running 10.10 on x86_64 quad core. I followed the suggestion in bug 545521 and removed everything under ~/.gconf/apps/panel/general and ~/.gconf/apps/panel/toplevels, rebooted and then everything worked (but all customization was lost of course). Attaching the removed files in case they are of any interest.
** Attachment added: "gnome-panel.tar.bz2" https://bugs.launchpad.net/ubuntu/+source/gnome-panel/+bug/479826/+attachment/3305019/+files/gnome-panel.tar.bz2 -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/479826 Title: gnome-panel consuming 100% of CPU and driving up memory To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/gnome-panel/+bug/479826/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs