I can confirm it too...

The only difference being that I am on the Final Release that I downloaded 
yesterday...
I too get the same erratic dialog when I double click over it and the things 
still goes fine after neglecting that message that pops out...But when I right 
click and choose the mount option,things goes kinda fine and the drive is shown 
mounted and I can enter into it without any hassle by double clicking it !!!

I repeat my specs : Ubuntu 8.10 (Final Release) plus all the updates
released till date (excluding linux-headers-2.6.27-7,linux-
headers-2.6.27-7-generic & linux-image-2.6.27-7 generic)

-- 
Unable to mount location -- Internal error: No mount object for mounted volume
https://bugs.launchpad.net/bugs/256749
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