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When I click on a large image, the zoom level is set to 1:1. For most digital camera pictures, this means that the image greatly exceeds the boundaries of the nautilus window; my next step is always to zoom down so I can see the whole thing. Over and over... Nautilus is great but this default zooming behavior keeps me from using it as a thumbnail viewer. I think the program would be very much improved if defaulted to zooming an image to fit in the nautilus window, similar to the way EOG handles it.
gthumb in rawhide may work better here, though I'm not sure our package is working yet.
Changing to MoveUpstream keyword instead of GnomeUpstream tracking bug. sorry about the spam.
This is fixed in nautilus 2.1.91 (in rawhide). In fact it uses EOG to view images in nautilus.