Dired 7.16 bug: dired on ~ prevents exiting XEmacs with desktop.el active

When exiting from XEmacs with desktop.el active, the desktop file in
~, and a dired buffer open on ~, attempting to exit (C-x C-c) fails
with the error

    Error in dired-find-file-place 

The dired buffer is corrupted like this:

  drwx------  3 steve users     4096 Sep  3  2008 .dbus 
  drwxr-xr-x  3 steve users     4096 May 14  2007 .emacs.d-rw-r--r-- 1 steve users 16314 Jan 16 01:16 /home/steve/.emacs.desktop 
  -rw-------  1 steve users       16 Jul 30 15:23 .esd_auth 

Restoring it with g gives:

  drwx------  3 steve users     4096 Sep  3  2008 .dbus 
  drwxr-xr-x  3 steve users     4096 May 14  2007 .emacs.d 
  -rw-r--r--  1 steve users    16314 Jan 16 01:16 .emacs.desktop 
  -rw-------  1 steve users       16 Jul 30 15:23 .esd_auth 

but C-x C-c fails in the same way.

The above report has been registered with the XEmacs tracker
(issue655).


Emacs  : XEmacs 21.5  (beta29) "garbanzo" 1444e28f1a3d [Lucid] (x86_64-unknown-linux, Mule) of Tue Nov 24 2009 on uwakimon
Package: Dired

current state:
==============
(setq
 dired-version "7.16"
 dired-after-readin-hook nil
 dired-backup-if-overwrite nil.
 dired-before-readin-hook nil
 dired-chown-program "chown"
 dired-cleanup-alist '(("tex" ".toc" ".log" ".aux" ".dvi")
		       ("latex" ".toc" ".log" ".aux" ".idx" ".lof" ".lot"
			".glo" ".dvi")
		       ("bibtex" ".blg" ".bbl")
		       ("texinfo" ".cp" ".cps" ".fn" ".fns" ".ky" ".kys" ".pg"
			".pgs" ".tp" ".tps" ".vr" ".vrs")
		       ("patch" ".rej" ".orig") ("backups" "~")
		       ("completion-ignored-extensions" ".svn/" "CVS/" ".o"
			".obj" ".elc" "~" ".bin" ".lbin" ".dvi" ".class")
		       )
 dired-compression-method 'gzip
 dired-compression-method-alist '((gzip ".gz" ("gzip") ("gzip" "-d") "-f")
				  (compress ".Z" ("compress" "-f")
				   ("compress" "-d") "-f")
				  (pack ".z" ("pack" "-f") ("unpack"))
				  (compact ".C" ("compact") ("uncompact"))
				  (bzip2 ".bz2" ("bzip2") ("bunzip2") "-f"))
 dired-copy-preserve-time t
 dired-do-highlighting t
 dired-do-interactive-permissions t
 dired-dwim-target nil
 dired-failed-marker-shell ?!
 dired-filename-re-ext "\\..+\\'"
 dired-find-file-compare-truenames t
 dired-find-subdir nil
 dired-gnutar-program nil
 dired-grep-load-hook nil
 dired-keep-marker-compress t
 dired-keep-marker-copy ?C
 dired-keep-marker-hardlink ?H
 dired-keep-marker-kill ?K
 dired-keep-marker-rename t
 dired-keep-marker-symlink ?S
 dired-keep-marker-uucode ?U
 dired-kept-versions 2
 dired-listing-switches "-al"
 dired-load-hook nil
 dired-local-variables-file ".dired"
 dired-ls-F-marks-symlinks nil
 dired-ls-locale nil
 dired-ls-program "ls"
 dired-mail-reader 'vm
 dired-mode-hook '(dired-install-menubar)
 dired-mode-line-modified "-%s%s%s-"
 dired-no-confirm nil
 dired-omit-extensions '(".class" ".lbin" ".bin" ".elc" ".obj" ".o" "CVS/"
			 ".svn/" "~" ".orig" ".rej" ".vrs" ".vr" ".tps" ".tp"
			 ".pgs" ".pg" ".kys" ".ky" ".fns" ".fn" ".cps" ".cp"
			 ".bbl" ".blg" ".glo" ".lot" ".lof" ".idx" ".dvi"
			 ".aux" ".log" ".toc")
 dired-omit-files nil
 dired-omit-regexps '("\\`#" "\\`\\.")
 dired-refresh-automatically t
 dired-setup-keys-hook nil
 dired-show-ls-switches nil
 dired-trivial-filenames "\\`\\.\\.?\\'\\|\\`#"
 dired-unshar-program nil
 dired-use-file-transformers t
 dired-use-ls-dired nil
 dired-verify-modtimes t
 reporter-version "Your version of reporter is obsolete.  Please upgrade."
 )