Ok, disabled but still no difference. Happy to delete account and create a new one, but I need access to those files ...
A friend on the Apple Support site found the answer for me. See:
https://discussions.apple.com/message/18434861#18434861
Thanks to everyone else for their help/comments.
I followed the instructions from the apple support site, and yes it works great. However it does not really fix the problem. When I restart my computer I still cannot access my files via the "go" tab in the menu bar. Is this a Lion quirk? Any suggestions?