Quoting Neil Banfield, reply 13never put it past Microsoft to be changing core OS features to suit their browser.
Indeed. I'm seeing Fences 2.01 malfunction (hopoefully fixed) after the patch Tuesday updates and IE10 for W7 installation.
Whats happening with Fences?
1. On one computer (W7x64 HP) had issue with aero... reactivated through services. Error message from Fences: Folder portal will not work w/o Aero."
2. On other computer (W7x64 HP) got a desktop with icons as if in Fences w/o the actual Fences and a second set of icons partially superimposed on them. On single left or right click all would disappear for approx. 3 sec. then reappear. Uninstalled Fences, rebooted and reinstalled (kept settings). Problem solved.
Frankief's link and solution noted - thanks, Frankie. Haven't uninstalled KB2670838, but have uninstalled IE10 for W7 Platform Preview through the method outlined in my post on IE 10.