http://bugzilla.openedhand.com/show_bug.cgi?id=1805
Index: applets/startup/startup.c
===================================================================
--- applets/startup/startup.c	(revision 2098)
+++ applets/startup/startup.c	(working copy)
@@ -228,6 +228,7 @@
         applet = g_slice_new (StartupApplet);
 
         applet->launch_list = NULL;
+        applet->hourglass_shown = FALSE;
 
         /* Create image */
         applet->image = MB_PANEL_SCALING_IMAGE