I like what I'm seeing.  Simple straight forward and functional.  By following the new Object Desktop UI for configuring, this new Beta application helps me to know right away how to use Fences.  I also really like the Customize option,  it gives me an excellent way to manage the appearance of Fences.

Additionally how it sets itself up and organizes my desktop icons is excellent.  An enhancement would be to have folders optionally set to display as a menu (similar to DesktopX and the Windows Desktop Toolbar) or the standard open folder display.

I'm just beginning to kick the tires on this one and so far I'm happy with it.  My desktop looks immediately more organized.   Good job on this!

First bug I've found.  Double clicking an item whether a program shortcut or folder doesn't open it or launch it instead it opens the item's properties panel.  

It could also benefit from some sort of visual indicator that the Fences are locked, maybe visible on mouseover or possibly some sort of unobtrusive visual indicator that's always visible.  The idea being I might choose to lock my Fences then some number of weeks later forgetting it's locked state try to make a change(move an icon) and not know why it wouldn't take.  I like the idea of Locking (locked)  gives me a fast way to drag an icon to a Fence and have a shortcut to that item appear or optionally (unlocked) moves the item.  Nice!

New bug.

I had a Desktop Folder called Utilities I right clicked it, opened it and dragged an item from my desktop to the folder.  This caused my Utilities folder to leave it's Fence and appear on my desktop outside of Fences.

That's it for now.  I'll try to find other opportunities to provide constructive feedback.