The patch did not upload correctly, please see below
--- a/client/gvfsfusedaemon.c	2009-11-18 15:14:51.000000000 +0300
+++ b/client/gvfsfusedaemon.c	2010-04-03 02:02:55.000000000 +0400
@@ -1832,20 +1832,23 @@
 }
 
 static gint
-vfs_ftruncate (const gchar *path, off_t size, struct fuse_file_info *fi)
+process_truncate (const gchar *path, off_t size, struct fuse_file_info *fi, gboolean ftruncate)
 {
   GFile  *file;
   GError *error  = NULL;
   gint    result = 0;
   goffset current_size;
 
-  debug_print ("vfs_ftruncate: %s\n", path);
-
   file = file_from_full_path (path);
 
   if (file)
     {
-      FileHandle *fh = get_file_handle_from_info (fi);
+      FileHandle *fh = NULL;
+      if (ftruncate) {
+        fh = get_file_handle_from_info (fi);
+      } else {
+        fh = get_file_handle_for_path (path);
+      }
 
       if (fh)
         {
@@ -1894,6 +1897,13 @@
                 }
             }
 
+          /*If truncate() called, close stream*/
+          if (!ftruncate && fh->stream) {
+            g_output_stream_close (fh->stream, NULL, NULL);
+            g_object_unref (fh->stream);
+            fh->stream = NULL;
+          }
+          
           g_mutex_unlock (fh->mutex);
           file_handle_unref (fh);
         }
@@ -1909,70 +1919,26 @@
       result = -ENOENT;
     }
 
-  debug_print ("vfs_ftruncate: -> %s\n", g_strerror (-result));
+  return result;
+}
 
+static gint
+vfs_ftruncate (const gchar *path, off_t size, struct fuse_file_info *fi)
+{
+  gint result = 0;
+  debug_print ("vfs_ftruncate: %s\n", path); 
+  result = process_truncate(path, size, fi, TRUE);
+  debug_print ("vfs_ftruncate: -> %s\n", g_strerror (-result));
   return result;
 }
 
 static gint
 vfs_truncate (const gchar *path, off_t size)
 {
-  GFile  *file;
-  GError *error  = NULL;
-  gint    result = 0;
-
-  debug_print ("vfs_truncate: %s\n", path);
-
-  file = file_from_full_path (path);
-
-  if (file)
-    {
-      GFileOutputStream *file_output_stream = NULL;
-      FileHandle        *fh;
-
-      /* Get a file handle just to lock the path while we're working */
-      fh = get_file_handle_for_path (path);
-      if (fh)
-        g_mutex_lock (fh->mutex);
-
-      if (size == 0)
-        {
-          file_output_stream = g_file_replace (file, 0, FALSE, 0, NULL, &error);
-        }
-      else
-        {
-          file_output_stream = g_file_append_to (file, 0, NULL, &error);
-          if (file_output_stream)
-              g_seekable_truncate (G_SEEKABLE (file_output_stream), size, NULL, &error);
-        }
-
-      if (error)
-        {
-          result = -errno_from_error (error);
-          g_error_free (error);
-        }
-
-      if (file_output_stream)
-        {
-          g_output_stream_close (G_OUTPUT_STREAM (file_output_stream), NULL, NULL);
-          g_object_unref (file_output_stream);
-        }
-
-      if (fh)
-        {
-          g_mutex_unlock (fh->mutex);
-          file_handle_unref (fh);
-        }
-
-      g_object_unref (file);
-    }
-  else
-    {
-      result = -ENOENT;
-    }
-
+  gint result = 0;
+  debug_print ("vfs_truncate: %s\n", path); 
+  result = process_truncate(path, size, NULL, FALSE);
   debug_print ("vfs_truncate: -> %s\n", g_strerror (-result));
-
   return result;
 }

I've posted a patch in bug 627567 which should solve most issues. I'm also waiting for a reply from FUSE folks. The vfs_truncate() and vfs_ftruncate() functions might be adapted according to their reply.

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