[X4U] Two Desktops in sidebar

[Lynch Andrew]

Hi Folks,
   For some reason there are two "Desktop"s in the lower portion of  
the sidebar in finder.  If I drag them out, they poof.  Then I open  
finder preferences, and click on sidebar preferences,  Desktop is  
unchecked.  If I click on the checkbox, one desktop appears in the  
sidebar, but the box remains unchecked.  If I click the checkbox  
again, another desktop appears and the box becomes checked.

I have also noticed that open/save dialogs have two desktops.

I've cleaned caches and deleted the com.apple.finder.preferences.

Any ideas how to solve this annoyance?

-Drew