Just as a test, if you uninstall WPE, reboot, and then set your background to a static color in Windows:

Does it then work as you would expect with and without Chameleon enabled?
If you then set a photo as background, does it work?

If you then install WPE with the very default settings does it work?
If not, and you have Chameleon and 'blur' off in Fences, does it work?

If you edit the transparency to fully fill the Fence, and select a color, does the Fences fill?

Sean Drohan
Stardock Product Lifecycle Manager