Created attachment 4595 icon of SuperTuxCart If a *.desktop file uses an XPM icon, the icon is not scaled or cropped in the menu and it overlays the previous menu items (see attachments).
Created attachment 4596 icon of Shadowgrounds
Confirmed here (xfce 4.10 on up-to-date arch linux).
Created attachment 4612 TrueCrypt and GQ xpm icons not scaled Same issue here (Arch Linux up-to-date, XFCE 4.10), but actually it looks ok in the menu but not in a panel (see attachment, both TrueCrypt and GQ - an LDAP browser - icons are affected).
I can also confirm this in the case of xpm icons. It is caused by any version of greater than gdk-pixbuf-2.26.3. It's OK with 2.26.1.
*** Bug 9366 has been marked as a duplicate of this bug. ***
It only affects lines like: Icon=/opt/eclipse-sdk-bin-4.2/icon.xpm Line: Icon=bitcoin80 Isn't affected (but it's still xpm)
*** Bug 9354 has been marked as a duplicate of this bug. ***
*** Bug 9316 has been marked as a duplicate of this bug. ***
Bug #9615 is newer, but there's a patch attached there, so I'm marking this one as dup. *** This bug has been marked as a duplicate of bug 9615 ***