I am also running into the same issues when dragging shortcuts to a Fence. One thing that I did noticed that was not mentioned in any previous post was that I am able to drag desktop shortcuts to created "Folder Portals" with no problem.
All the Software listed below was installed on February 16, 2013 and I had no issues until this morning. I rebooted and Logged off but it did not help.
I wonder if a Windows Update has caused the conflict?
Windows 8 32 & 64 bit dual-boot
Lenovo Workstation S20 Xeon
Stardock Software Installed:
Decor8 - Version 1.01
DeskScapes 8 - Version 8.00
Fences 2 - Version 2.01
Start8 Version 1.11