I can confirm this problem. It started for me after I upgraded to
Jaunty. My desktop preferences don't work. I have tried everything I
found on the Internet including the ones mentioned above. Please find a
screenshot attached.

This is definitely a problem with the gnome-settings-daemon as you can
see in the screenshot.

I tried running e2fsck for my root partition (I do not have a separate
partition for /home). It is clean and no errors are detected.

Most applications don't work including media players, etc. Also,
keyboard shortcuts don't work for the most part. I am just happy Firefox
and Synaptic are working. Please suggest a solution.

** Attachment added: "Screenshot.png"
   http://launchpadlibrarian.net/25937111/Screenshot.png

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After upgrade to Jaunty Beta my machine shows different problems, , random high 
load, no meta key, etc.
https://bugs.launchpad.net/bugs/352362
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