Thanks so much for your quick response! I tried what you said, but no good. First, the Lock Fences thing was unchecked already. I played around with it by deleting the faulty fence then locking then unlocking, then re-creating it. I still couldn't resize it. I could move it around, but not resize it.
I was trying to create a folder portal for the main Desktop folder. It worked fine yesterday, but now even when I re-create it it doesn't work. Then I tried creating folder portals using other random folders and it worked fine with those. Just not with the desktop folder.
I also tried the "Creating Fence" option and that gave me the same problem. I could not resize those at all either.