I've attempted to recreate your directory setup, but the issue doesn't occur for me. Can you tell me if the issue is present in Dapper? (Using xscreensaver 4.23-4ubuntu8.)
** Changed in: xscreensaver (Ubuntu)
Status: Unconfirmed => Needs Info
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file selector dialog can't see some directories
https://launchpad.net/bugs/24569
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