This appears to be no longer an issue in Xubuntu 7.10 (Gutsy). Thank you
for your bug report. If you encounter this bug again in Xubuntu 7.10
(Gutsy), please feel free to reopen this bug.
** Changed in: xfdesktop4 (Ubuntu)
Status: Triaged => Fix Released
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Quit-button in desktop menu in Xfce does not always work
https://bugs.launchpad.net/bugs/65720
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