Comment # 9 on bug 963680 from Wolfgang Bauer

(In reply to Chuck Davis from comment #8)
> What is interesting is this:
> 
> If you place a Quicklaunch on the desktop and right click to add a launcher
> the correct dialog appears 

Yes, the problem is not in the dialog, the problem is that the files to copy
cannot be found when using the "Create New" function.

You can still just drag/drop an entry from the application menu to the
folderview (or select "Add to Desktop" in the context menu), this *should*
work.

> Upstream really, REALLY needs to get this fixed.

Yes.
Although I don't consider this as critical as you apparently do.