It's fixed for me with firefox v3.0.3.
$apt-cache policy firefox-3.0
firefox-3.0:
Installed: 3.0.3+nobinonly-0ubuntu2
Candidate: 3.0.3+nobinonly-0ubuntu2
Version table:
*** 3.0.3+nobinonly-0ubuntu2 0
500 http://de.archive.ubuntu.com intrepid/main Packages
100 /var/lib/dpkg/status
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[MASTER] Firefox 3 "set as Desktop background" does not work properly
https://bugs.launchpad.net/bugs/206191
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