Yup, that worked.

Here's the value that was causing the problem:

c:\documents and settings\administrator|My Documents?

After removing the code above, I decided to enable the quick-hide exclusion for "My Documents" and copy the value for that.  Here is the value it set:

c:\documents and settings\administrator\my documents|My Documents?

The difference is pretty clear.  It looks like the first part of the value tells it what folder or file to exclude and then the second part (after the vertical bar) gives it the name to display in the Fences settings window.  Meaning that it was most likely trying to exclude the "administrator" folder from the quick-hide feature, which is kinda pointless seeing how that folder isn't even on the desktop.   Anyhow, I'm glad that problem was solved.  Thanks!