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Well I have the same problem. I installed the nvidia update for my 8800 gtx and descapes does not work. Right now I have parts of two deskscapes visible on my desktop. I'm also getting freezing with, at times flashing on my monitor. I did roll back, but it did not solve the problem.
Every single time I update the Icon Packager it asks for my activation code. I have Object Desktop and have had it and renewed it for years...why is this such a problem? I would think that it would update and automatically know the activation code...it does for every other updated program with OD.