I delete the Downloads folder from my home folder. When I create a new folder there called "Downloads", it doesn't have the proper icon, and it doesn't show up in the places sidebar.
I tried adding Downloads to ~/.config/user-dirs.dirs (specifically, adding the line XDG_DOWNLOADS_DIR="$HOME/Downloads/"), but this didn't do anything it seems.
How can I get my regular Downloads folder back?

XDG_DOWNLOAD_DIR="$HOME/Downloads", norXDG_DOWNLOADS.... The folder should get recreated on logout/login. – mikewhatever Nov 17 '11 at 00:18