Comment 2 for bug 319725

I see the issue. The odd part is it only happens when you are going down in resolution and not up. I'm using a XPS using the Nividia driver. To acurately reproduce you have to

1) kill gnome-settings-daemon
2) Run "gnome-setting-daemon --debug --sync --no-daemon"

** (gnome-settings-daemon:6678): DEBUG: Loading /usr/lib/gnome-settings-daemon-2.0/libhousekeeping.so
** (gnome-settings-daemon:6678): DEBUG: Registering GsdHousekeepingPlugin
** (gnome-settings-daemon:6678): DEBUG: Creating object of type GsdHousekeepingPlugin
** (gnome-settings-daemon:6678): DEBUG: GsdHousekeepingPlugin initializing
** (gnome-settings-daemon:6678): DEBUG: Activating housekeeping plugin
** (gnome-settings-daemon:6678): DEBUG: Starting housekeeping manager
** (gnome-settings-daemon:6678): DEBUG: housekeeping: will tidy up in 2 minutes
** (gnome-settings-daemon:6678): DEBUG: GnomeSettingsManager: emitting plugin-activated housekeeping
** (gnome-settings-daemon:6678): DEBUG: Plugin housekeeping: active
[1233285507,000,xklavier.c:xkl_engine_start_listen/] The backend does not require manual layout management - but it is provided by the applicationdesired is = /home/ubuntu/.config/monitors.xml.desired
reading configuration...
done
error MATCHESdesired is = /home/ubuntu/.config/monitors.xml.desired
reading configuration...
done
error MATCHES