Index: wp-admin/includes/nav-menu.php
===================================================================
--- wp-admin/includes/nav-menu.php	(revision 23297)
+++ wp-admin/includes/nav-menu.php	(working copy)
@@ -252,7 +252,10 @@
 			$output .= ' add-to-top';
 		}
 		$output .= '" name="menu-item[' . $possible_object_id . '][menu-item-object-id]" value="'. esc_attr( $item->object_id ) .'" /> ';
-		$output .= isset( $title ) ? esc_html( $title ) : esc_html( $item->title );
+		if ( isset( $item->post_type ) )
+			$output .= empty( $item->label ) ? esc_html( apply_filters( 'the_title', $item->title, $item->ID ) ) : esc_html( $item->label );
+		else
+			$output .= isset( $title ) ? esc_html( $title ) : esc_html( $item->title );
 		$output .= '</label>';
 
 		// Menu item hidden fields