diff -Naurp xfce4-places-plugin-1.1.0.bak/panel-plugin/model_system.c xfce4-places-plugin-1.1.0/panel-plugin/model_system.c
--- xfce4-places-plugin-1.1.0.bak/panel-plugin/model_system.c	2008-06-07 20:01:09.000000000 +0200
+++ xfce4-places-plugin-1.1.0/panel-plugin/model_system.c	2008-10-15 06:02:03.000000000 +0200
@@ -87,6 +87,8 @@ pbsys_get_bookmarks(PlacesBookmarkGroup 
     ThunarVfsInfo *trash_info;
 #endif
     const gchar *home_dir = xfce_get_homedir();
+    gchar *desktop_dir = NULL;
+    gboolean desktop_is_home = FALSE;
 
     pbg_priv(bookmark_group)->check_changed = TRUE;
 
@@ -133,11 +135,18 @@ pbsys_get_bookmarks(PlacesBookmarkGroup 
 
     /* Desktop */
     bookmark                = places_bookmark_create(_("Desktop"));
-    bookmark->uri           = g_build_filename(home_dir, "Desktop", NULL);
+#if GLIB_CHECK_VERSION(2,14,0)
+    desktop_dir = g_strdup(g_get_user_special_dir(G_USER_DIRECTORY_DESKTOP));
+    desktop_is_home = exo_str_is_equal(desktop_dir, home_dir);
+#endif
+    if (G_UNLIKELY(desktop_dir == NULL))
+        desktop_dir = g_build_filename(home_dir, "Desktop", NULL);
+
+    bookmark->uri          = desktop_dir;
     bookmark->icon          = "gnome-fs-desktop";
     bookmark->finalize      = pbsys_finalize_desktop_bookmark;
 
-    if(g_file_test(bookmark->uri, G_FILE_TEST_IS_DIR)){
+    if((!desktop_is_home) && (g_file_test(bookmark->uri, G_FILE_TEST_IS_DIR))) {
     
         terminal                 = places_create_open_terminal_action(bookmark);
         bookmark->actions        = g_list_prepend(bookmark->actions, terminal);
@@ -179,13 +188,21 @@ pbsys_changed(PlacesBookmarkGroup *bookm
     gboolean trash_is_empty = FALSE;
     ThunarVfsInfo *trash_info;
 #endif
+    gchar *desktop_dir = NULL;
+    gboolean desktop_is_home = FALSE;
 
     if(!pbg_priv(bookmark_group)->check_changed)
         return FALSE;
     
     /* Check if desktop now exists and didn't before */
-    uri = g_build_filename(xfce_get_homedir(), "Desktop", NULL);
-    if(g_file_test(uri, G_FILE_TEST_IS_DIR) != pbg_priv(bookmark_group)->desktop_exists){
+#if GLIB_CHECK_VERSION(2,14,0)
+    desktop_dir = g_strdup(g_get_user_special_dir(G_USER_DIRECTORY_DESKTOP));
+    desktop_is_home = exo_str_is_equal(desktop_dir, xfce_get_homedir());
+#endif
+    if (G_UNLIKELY(desktop_dir == NULL))
+        desktop_dir = g_build_filename(xfce_get_homedir(), "Desktop", NULL);
+    uri = desktop_dir;
+    if((!desktop_is_home) && (g_file_test(uri, G_FILE_TEST_IS_DIR) != pbg_priv(bookmark_group)->desktop_exists)){
         g_free(uri);
         return TRUE;
     }else