The latest version of Wine (1.2.5, not the 1.3 beta) has the same problem. I had thought it was an Ubuntu 10.10 problem, but apparently not. I've been trying to get Il-2 Sturmovik 1946 (flight sim game) running. It does the same thing - path to exe file not correct on the desktop icon and a .ink file. Changing the ink to exe doesn't do anything.
I'm just about to give up on Linux altogether. It's been running fine, but the "work in progress" goes on forever. I understand that to a degree, but things are just to slow to be corrected. I reported this problem over six months ago and never really got an answer. i waited for some updates in Ubuntu and Wine, but neither helped. I bought Il-2 because it is (erroneously?) rated as "platinum" on the Wine apps site (runs flawlessly). I was told to just install it and it would work with wine. It won't work well in VM either - it runs but there is no mouse or keyboard control passed to the program. I have considered a dual-boot option, and might go that route, but there is nothing Linux does that Windows won't. If Wine or VM worked well I'd keep Linux on my entertainment machine, but that's not the case, and there is little help. I thought Linux might be ready for mainstream use, and it is in a way, but only for basic computing. Internet and work such as word processing is fine, but games and other more popular things are flawed at best. Even the movie viewers that come packaged with Mint 10 are flawed -- the colors are all wrong (a blue bias on my computer). Uninstallng and reinstalling didn't help, nor updates. I resorted to trying different third party packages until I found one that works (Moovida... and it has a minor bug when playing DVDs).
Sorry for the rant, but this bug (and the lack of an answer anywhere for months) is the main cause.
HTPC: Mint 11, Athlon II x4 (2.6 GHz), GeForce 9400, 4GB
Shop PC: XP Pro, Athlon 64 X2 (2.19 GHz), GeForce 7300GS, 2GB
Wife's PC: Win 7, Athlon II x3 (2.7GHz), GeForce 8200, 4GB
DTP-PC: Mint 12, Phenom II x4 (3.0GHz), GeForce 9600GT, 8GB