It's broken again! Who would have thought something as simple as volume manager could be broken for so long. Enabling mute no longer marks the speaker icon as being muted. It worked for a while in FC5, was completely broken in FC4.
i can confirm that the panel applet icon does not have the red 'x' when muted - either by right clicking and muting or by opening (double-clicking) the Volume Control window and clicking the mute button under the Master volume control on the Playback tab....
will be fixed in the next gnome-applets update
Fixing up component.
I think this is fixed, isn't it?
*** Bug 172850 has been marked as a duplicate of this bug. ***
Works for me with current FC6 packages.