I am still able to reproduce this bug in Intrepid with nautilus version
1:2.23.5.1-0ubuntu2. The steps to reproduce the bug that are listed in
the bug description are still valid. One thing I did notice, was that
the background only becomes distorted when nautilus is maximized.
** Changed in: nautilus (Ubuntu)
Status: Incomplete => Confirmed
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Distorted folder background image when custom wallpaper (1024x768) is used
https://bugs.launchpad.net/bugs/248394
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