Description of problem:
I have a newly installed Fedora 12 system, installed using the GNOME LiveCD. I ran a system update yesterday, which updated many packages including nautilus. Up until yesterday night, the desktop and file manager were both loading properly.

After upgrades, on rebooting the system, the desktop refuses to load, with no error presented. There are no icons on the desktop, and I can't interact in any way. The panels load fine, firefox, terminal etc also work fine. However if I click on any place in the "Places" menu, it doesn't load. Similarly, typing "nautilus" in a terminal has no effect either.

I created a new user, and the exact same problem is occurring there also.

I checked my $HOME/.xsession-errors and /var/log/messages for obvious indicators, but couldn't find anything. I ran a strace in the command line, and there is some repetitive error from line 3699. I am attaching all these files.

Version-Release number of selected component (if applicable):
2.28.2-1.fc12.x86_64

How reproducible:
Always

Steps to Reproduce:
1. Start the system
2. Wait for desktop to load
3. Load the file manager on any location
  
Actual results:
Desktop doesn't load, and file manager (nautilus) doesn't start

Expected results:
Desktop should load and show icons, file manager should show the files and directories.