It look like, to me, "Explorer.exe" need to be excluded from Windowblinds for Lock Folder XP to work properly. Some how, Lock Folder XP need Explorer.exe to do its job. But, if you excluded Explorer.exe from Windowblinds, a large part of Windows will not be skin. Anyhow, I have forward your problem/question to Stardock Support Team for their assistance. Please keep an eye on this thread for any updates. We appreciate your feedback and patience.
Stardock Community Assistant