ok false alarm. it seems its actually an upstream issue and is now
fixed.
http://git.gnome.org/browse/empathy/commit/?h=gnome-2-32&id=04776cb50759931dde13c9bcfa0d200fd7c77a5a
** Changed in: empathy (Ubuntu)
Importance: Undecided => Medium
** Changed in: empathy (Ubuntu)
Status: Incomplete => Triaged
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getting notifications even set to not display notification when busy or away
https://bugs.launchpad.net/bugs/641949
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