diff -Naur xfdesktop-4.4.2/src/xfce-desktop.c xfdesktop-4.4.2.tpg/src/xfce-desktop.c
--- xfdesktop-4.4.2/src/xfce-desktop.c	2007-11-17 19:31:41.000000000 +0000
+++ xfdesktop-4.4.2.tpg/src/xfce-desktop.c	2008-05-05 12:07:03.000000000 +0000
@@ -150,6 +150,93 @@
     return desktop->priv->system_font_size;
 }
 
+/* Use XDG_DESKTOP_DIR */
+static char *
+lookup_desktop_dir (void)
+{
+  FILE *file;
+  char *config_file;
+  char buffer[512];
+  char *user_dir;
+  char *p, *d;
+  int len;
+  int relative;
+  
+  config_file = g_build_filename (g_get_user_config_dir (), "user-dirs.dirs", NULL);
+  file = fopen (config_file, "r");
+  free (config_file);
+  if (file == NULL)
+    goto error;
+  
+  user_dir = NULL;
+  while (fgets (buffer, sizeof (buffer), file))
+    {
+      /* Remove newline at end */
+      len = strlen (buffer);
+      if (len > 0 && buffer[len-1] == '\n')
+	buffer[len-1] = 0;
+      
+      p = buffer;
+      while (*p == ' ' || *p == '\t')
+	p++;
+      
+      if (!g_str_has_prefix (p, "XDG_DESKTOP_DIR"))
+	continue;
+      p += strlen ("XDG_DESKTOP_DIR");
+      
+      while (*p == ' ' || *p == '\t')
+	p++;
+      
+      if (*p != '=')
+	continue;
+      p++;
+      
+      while (*p == ' ' || *p == '\t')
+	p++;
+      
+      if (*p != '"')
+	continue;
+      p++;
+      
+      relative = 0;
+      if (strncmp (p, "$HOME/", 6) == 0)
+	{
+	  p += 6;
+	  relative = 1;
+	}
+      else if (*p != '/')
+	continue;
+      
+      if (relative)
+	{
+	  user_dir = g_malloc (strlen (g_get_home_dir()) + 1 + strlen (p) + 1);
+	  strcpy (user_dir, g_get_home_dir ());
+	  strcat (user_dir, "/");
+	}
+      else
+	{
+	  user_dir = g_malloc (strlen (p) + 1);
+	  *user_dir = 0;
+	}
+      
+      d = user_dir + strlen (user_dir);
+      while (*p && *p != '"')
+	{
+	  if ((*p == '\\') && (*(p+1) != 0))
+	    p++;
+	  *d++ = *p++;
+	}
+      *d = 0;
+    }  
+  fclose (file);
+ 
+  if (user_dir)
+    return user_dir;
+  
+ error:
+  return g_build_filename (g_get_home_dir (), "Desktop", NULL);
+}
+
 static void
 xfce_desktop_setup_icon_view(XfceDesktop *desktop)
 {
@@ -168,8 +255,7 @@
         case XFCE_DESKTOP_ICON_STYLE_FILES:
             {
                 ThunarVfsPath *path;
-                gchar *desktop_path = xfce_get_homefile("Desktop",
-                                                        NULL);
+                gchar *desktop_path = lookup_desktop_dir ();
                 
                 path = thunar_vfs_path_new(desktop_path, NULL);
                 if(path) {