I've noticed that when fences is running, I can't apply wallpapers by rightclicking on them and hitting Set as Destop Background. In detail:
I can right right click on it
I can select Set as Desktop Background
It does not set it and rightclicking on the desktop and hitting refresh doesn't help.
If I rightclick on the desktop and select Properties and then the Desktop tab, the recently selected wallpaper is the one showing in the computer window, but the previous wallpaper is the one showing on the desktop. When I click Browse, it takes me right to the folder that the wallpaper I want is in, and I can select it and then apply it.
Major problem? I don't think so, but it is a bit annoying, especially when trying to find the right wall for a particular theme. Just thought I'd mention it.