Not sure how to do this with translated directories, but it seems silly to have the directory and for the browser on your desktop to not use it by default and instead spew stuff into the Desktop folder.
We just updated the Firefox version in Fedora/development from 2.0 to a 3.0 pre-release version, which improves performance, memory usage, and fixes many bugs and crashes. Closing as CANTFIX since we aren't fixing bugs filed against 2.0 now that 3.0 is in. If this bug is still present in rawhide using a Firefox 3.0 version, please re-open this bug. Thanks and Happy Holidays