Seems like this is not the only thread which is discussing it..

http://talk.maemo.org/showthread.php?t=43056&page=2

The suggested solution is to uninstall load-applet. As I had said in my first post, my first instict when this issue was to uninstall the load-applet and for some time I thought it solved the issue.. but definetly it did not. Am going to put it back and take some screen shots..

--Vj