While I realize this is an upstream issue, I can't believe there's not
an Ubuntu patch even if upstream devs are unwilling to fix this.

Still seeing this same old bug behavior on Oneiric 11.10 with gnome 3.
The fact that this carried over from gnome 2.x.x shows a serious lack of
attention to usablilty/polish.

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https://bugs.launchpad.net/bugs/40872

Title:
  Desktop icons are allowed to overlap

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