Tracked upstream at 
https://sourceforge.net/tracker/?func=detail&aid=2977158&group_id=180858&atid=894869

Confirmed for me with the latest lxpanel-0.5.5-3.fc12.i686

It initially gave me num lock and scroll lock indicators, in that order.  I configured it to show me caps lock and num lock instead.  After logout and login, it showed me num lock and scroll lock again, albeit in reverse order this time.  Also, the scroll lock indicator doesn't work at all, but I'm on an EeePC, where the scroll lock is an fn-modified key.  The num lock is also fn-modified though, and it works.  Anyway, I don't really care about global scroll lock state, since applications these days generally interpret it as a toggle, but I'd really like my caps lock indicator to come back up each time.  Unlike the other two, it's very easy to fat-finger that key, especially on my 7" EeePC and other netbooks where LXDE is typically used.

Ooh, I just went to set my Keyboard LED applet config to caps lock and num lock (num lock and scroll lock came up) and found that the buttons for caps lock and num lock were already checked, from my previous session.  The check box for num lock worked properly, but the boxes for caps lock and scroll lock toggled each other's buttons, until I got it into a state where the check boxes matched the icons, and then they controlled the right things.  There's something very screwy going on with how Keyboard LED is processing that configuration.

It'd be nice if we could bump the priority on this, because while it's not that severe of a bug, it's very annoying, it makes us look bad to the many users who may be encountering Linux for the first time on a netbook, and it should be a fairly obvious fix for anyone who knows that code.

(In reply to comment #2)
> It'd be nice if we could bump the priority on this, because while it's not that
> severe of a bug, it's very annoying, it makes us look bad to the many users who
> may be encountering Linux for the first time on a netbook, and it should be a
> fairly obvious fix for anyone who knows that code.    

The best way to bump priority is to comment to the upstream bug report and add your comments there. If Marty knows how many people are affected/annoyed by this, he will probably invest more time.

Upstream bug report: https://sourceforge.net/tracker/?func=detail&aid=2977158&group_id=180858&atid=894869

I will build an updated package soon.

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This was fixed in lxpanel 0.5.6. If not, please reopen this bug and change the Fedora version to '14'.