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There is nothing about that solution that is specific to Desktop Edition as opposed to Netbook Edition, so if it works on Ubuntu Desktop Edition it should work on Ubuntu Netbook Edition. But you probably will not experience this problem on another system. Have you identified a series of steps that reliably produces this problem?

I'm not sure what produces this problem. It seems to be happening after an update but I'm not 100% certain. It has now happened twice on my desktop and one time on the laptop. I also see this issue arise by reading questions being asked, so it could possibly be a widespread issue. My knowledge with lenux is elementary at best, so for me to diagnose the issue would be next to impossible.

So, this didn't work but I found the correct fix.

My question is, how do I reverse what I did here since it was the wrong thing?

Here's what I did in Terminal...
gconftool-2 -s /desktop/gnome/url-handlers/file/command -t string "nautilus \"%s\""
gconftool-2 -s /desktop/gnome/url-handlers/file/enabled -t bool true

Do you have to reverse it? Doesn't everything work now that you've implemented your (other) solution?

Those two commands set things they way they're supposed to be--if they didn't produce a perceptible change, then those gconf2 keys were probably already set that way, so running those two commands probably made no change, and in that case there's nothing to undo.

By the way, if you tell us how you solved it (in this thread, not by starting a new one), then that information could help others.