Ubuntu desktop suddenly points to home folder

If gconf doesn't work, open your home directory and press Ctrl+H to show hidden files. Look in .config for user-dirs.dirs and be sure it resembles this:

XDG_DESKTOP_DIR="$HOME/Desktop"
XDG_DOWNLOAD_DIR="$HOME/Downloads"
XDG_TEMPLATES_DIR="$HOME/Templates"
XDG_PUBLICSHARE_DIR="$HOME/Work"
XDG_DOCUMENTS_DIR="$HOME/Documents"
XDG_MUSIC_DIR="$HOME/Music"
XDG_PICTURES_DIR="$HOME/Pictures"
XDG_VIDEOS_DIR="$HOME/Videos"

Press Alt + F2 and type/copy:

gconftool-2 --set --type bool /apps/nautilus/preferences/desktop_is_home_dir false

You probably need to log out and back in again (alternatively, you can run nautilus -q to restart just Nautilus).

Press alt f2 and type gksu gconf-editor and navigate to apps -> nautilus -> preferences. Have a look at: