While I stand by my glowing review of Xubuntu 6.10 (Edgy Eft), I have yet to find any release of any Linux distribution which was free of bugs or quirky behavior. The latest releases of the Ubuntu family of distributions are no different.
One of the nice things about Xfce4 is that it is very easy to customize and reconfigure any way you like. However, if you go into Settings -> User Interface Preferences to change around your desktop theme be careful about then also changing your icon theme. Some work, some don’t. Changing the theme to either default or Grounation crashes Xfce. It won’t start again, either. The fix is to restore your .config directory from backup. If you don’t have a backup you can copy it from another user directory or even /root and then
sudo chmod -R
If you copy from another user Xfce will start normally but your menu will not work since it still points to another user’s .config. Simply delete the menu from the panel and add it again to restore the menu. You will, of course, have the settings that the other user chose, not your own. Still, copying the whole .config is easier than figuring out which file really is broken, at least for me, and then hand probably editing xml. I probably will poke around further, though.
I haven’t been able to reproduce this bug in Vector Linux 5.8 either, but that distro uses Xfce 4.3.99 rc2 while Xubuntu still uses rc1.
Oh, and yes, I’ve been a responsible user and reported this bug (see bug #77445).