I have finally found a work around:

System >> Preferences >> Sessions >> Uncheck Power Management >> Reboot

Now Shutdown works normally.  Of course now Suspend and Hibernate do not
work but in the big scheme of things on this desktop system I never use
Hibernate anyway.  At least Shutdown and Reboot work fine now.

That tells me the problem is in "Power Management."

This is definitely a regression from 7.10 and earlier.

seldon7, my mb is a MSI, Intel 3.2 ghz, Northwood, ATI video

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Selecting "Shut Down" leads to a reboot
https://bugs.launchpad.net/bugs/234700
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