i can confirm this (both panels missing after the two grey bars appear for a 
second)
with the current xubuntu 7.10 desktop iso.
happens with cd boot and after installation and after 1st login. after that it 
seems ok.
the machine is an mp995, 128mb, 400mhz, no network.

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[gutsy] [beta] xubuntu panel pager missing
https://bugs.launchpad.net/bugs/138335
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