Sorry for being so unprecise before, my manners. I experience this bug
on a clean install of Ubuntu Karmic Koala that I put on my laptop today.
Everything is how it came from the Desktop Install CD and the repository
updates provided by Canonical. I have no confirmed this with my Desktop
PC also. Every folder I set to "Edit / Preferences / Views / Use Compact
Layout" gets individually stuck in compact layout. It seems like it
remembers the settings for each individual folder but refuses to "undo"
the compact layout setting.

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unsetting the compact option in the preference is broken
https://bugs.launchpad.net/bugs/435343
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