PapaShex something may have been...confused in your install...I would suggest first clearing the cache
Tutorial HERE. Do this first in order to delete any saved settings.
Then make sure that you have put all of your images, backgrounds, docklets ect in a safe place.......other than the OD folder in My documents....just place them in a different folder in my documents, or simply rename them ...

Then uninstall OD...use a registry cleaner as well....& make sure the OD folder in My documents is deleted. We want all traces of OD removed completely. *Note that if you installed via Stardock Central...then uninstall this way & make sure to agree to uninstall all skins, images ect.
Now if you do not have it install Stardock Central:Found HERE
Now install OD via SDC (Stardock Central)..Find OD listed under MISC...see if this corrects the issue with OD recognizing the OD folder in My documents.....*Note that if you choose to install the free version, then install the plus...you MUST uninstall the free versions first & should clean the cache as well...same steps as above. 
OD plus is a pleasure to use and the flyouts are great, I hope that you will be soon able to enjoy using the program. 
It's My Secret