I'm having this issue in maverick. I changed language from English (India) to 
English (US)and now I'm getting thee dialog with the following. 
Current folder name            New folder name
"/home/user/Desktop"          /home/user/Downloads
/home/user                          /home/user/Music

Also I found that Me menu sound applet etc is also not working now. I
dont know if it has anything to do with the language change.

** Tags added: maverick

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After upgrade, "Update standard folders to current language" threatens to 
rename your home folder
https://bugs.launchpad.net/bugs/209513
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