I have had this issue with fences ever since doing a clean rebuild with Win 7 64 bit.... the slightest change to any icon in a group... e.g. rename or drag a new one in or out and then 3 explorer restarts before fences disables itself due to the errors. If you immediately re-enable the same crash repeats. Only a cold reboot will get it working again.
As for not working with network shortcuts... why not.. with the advent of low cost NAS at home people are more and more likely to have links to remote storage folders which yes could be "offline" until you click on them... the software should be able to deal with that, after all its in the windows API spec for such links.
I still use fences but I have to ensure that I snapshot before any changes... and then do them one at a time snapshotting each time.... its very rare that I can do more than one action before a crash.
Also had been around the loop of uninstalling one by one each prog... e.g antivirus, steam etc... to see if something specific was causing the issue.
This is still true even if its installed on a virgin SSD Win 7 64 bit build with absolutely no other software other than the detected device drivers having been installed.
I've come to the conclusion that it may be something to do with my hardware setup... being an overclocked CPU and GFX card... but then again every other prog and game I run deals with this setup no problem.... guess this software simply cannot deal with all system setups.....
Before 7 when I was on XP SP3 fences was flawless... go figure...
And i apologise if any of this came over as terse or short... its been a long time saga with me....