Cannot create ssh location launcher 8.04

In Ubuntu 7.10 I can create a launcher on the panel to connect to a remote server (in this example named "taylor6" by ssh as follows:
- open a terminal window and type ssh taylor6
- answer Yes to accept RSA key (first time only)
- enter my password on taylor6
- exit
I then right click on the panel and select "Add to panel" and "Custom Application Launcher". In the dialog presented I then
- change the Type to "Location"
- provide a Name for the launcher
- in the Location is enter "ssh://taylor6" - no quotes of course
- OK
The first time I click the launcher I receive a series of dialogs:
- Authentication Required - I enter my password & select "Remember forever"
- Unlock Keyring - I agree to this
- Allow Access to Keyring - I select Always
And now my ssh connection to taylor6 opens in Nautilus. From now on I can click on the launcher and open my ssh connection to taylor6 without any interaction as I have supplied and stored credentials on the keyring etc.

On Ubuntu 8.04 newly installed and updated through 2008-05-11 I complete the same process to create launcher. When I click the launcher I am not presented with any dialogs. In fact the machine locks up completely and I have to do a power cycle reset.

Sorry I do not know if this bug originates in Gnome or Nautilus. The machine is left in such a state that I cannot do any investigation after I click the launcher.