There's nothing more explaining than few screenshots :)
Settings in Workspaces dialog box:
Behaviour for right-clicking on the application botton on the Task List:
Finally, behaviour for the same action on the top bar of a normal window on the desktop:
Hope this could help enough.
As far as I can tell, this seems like a bug in xfwm4.
Cannot tell, the screenshots are all empty, useless 1x1 images. If you want me to work on your issue, you must provide relevant data _in_ the bugzilla.
Anyway, it is worth noting that the WM does not set the workspaces names at all.
Also workspaces names are broken in RC1, due to a regression introduced by a last minute commit to perfectly working code:
That was fixed in trunk in revision 29403
Created attachment 2151
Settings dialog box for Workspaces
Created attachment 2152
Task List behaviour
Created attachment 2153
Application top bar behaviour
What you see here is the default values when no values are set, this is definitely not a bug in the window manager, but rather in the xfce4-settings-helper.
If possible, please update the settings-manager to the once from svn trunk, I strongly suspect that this is what rev. 29403.
Also, make sure xfce4-settings-helper is actually running, because it's that daemon that listen to translates xfconf values for workspaces names into the standard property as defined in the EWMH.