Still seeing this in Gutsy Gibbon, clean install. Steps to reproduce:

1. On desktop, Right-Click -> Create Folder. 
2. Drag "untitled folder" to the GNOME panel.
3. Drag the folder across the GNOME panel.
4. Click the icon.

Results:
Icon changes to a spring with a platform on top. Clicking it pops up a dialog:

Error
Could not launch application
Not a launchable item

Right-click -> Properties brings up the Launcher Properties dialog,
which says:

Type: Application
Name:
Command:
Comment:

(all the fields except Type are blank).

Not exactly sure how to re-open. I set the Status of this bug to New.

** Changed in: gnome-panel (Ubuntu)
       Status: Fix Released => New

-- 
GNOME panel can't always launch folders with filenames containing spaces
https://bugs.launchpad.net/bugs/123458
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