Issue

When trying to install a game under the default location (~/.local/share/Steam) I intermittently receive error:

Steam - Error
The selected filesystem does not allow executing files.
Please re-mount it with the exec option and then try again.

If I keep pressing back then next till the error doesn't display the game installs like normal.

Steps to reproduce

1. Right click on game not currently installed
2. Click install
3. In install dialogue click next
4. If error does not display click back

Repeat Steps 3-4 till error appears.

System Info

Processor Information:
Vendor: GenuineIntel
Speed: 3801 Mhz
12 logical processors
6 physical processors
HyperThreading: Supported
FCMOV: Supported
SSE2: Supported
SSE3: Supported
SSSE3: Supported
SSE4a: Unsupported
SSE41: Supported
SSE42: Supported

Network Information:
Network Speed:

Operating System Version:
Ubuntu 12.10 (64 bit)
Kernel Name: Linux
Kernel Version: 3.5.0-22-generic
X Server vendor: The X.Org Foundation
X Server release: 11300000

Video Card:
Driver: NVIDIA Corporation GeForce GTX 580/PCIe/SSE2

Driver Version:  4.3.0 NVIDIA 310.14
Desktop Color Depth: 24 bits per pixel
Monitor Refresh Rate: 59 Hz
VendorID:  0x10de
DeviceID:  0x1080
Number of Monitors:  1
Number of Logical Video Cards:  2
Primary Display Resolution:  2560 x 1440
Desktop Resolution: 2560 x 1440
Primary Display Size: 23.50" x 13.23"  (26.97" diag)
                                        59.7cm x 33.6cm  (68.5cm diag)
Primary Bus: PCI Express 16x
Primary VRAM: 1535 MB
Supported MSAA Modes:  2x 4x 8x 16x 

Sound card:
Audio device: Nvidia GPU 18 HDMI/DP

Memory:
RAM: 15998 Mb

Miscellaneous:
UI Language: English
LANG: en_AU.UTF-8
Microphone: Not set
Total Hard Disk Space Available: 112674 Mb
Largest Free Hard Disk Block: 74585 Mb

Installed software:

Recent Failure Reports: