Don't know if anybody's reading this, but the latest update (96.040, would be nice to have a history entry for it. Missing history entries seems to be quite common on Impulse in general, by the way) fixed the wallpaper issue for me. THANK YOU. I've been missing wallpaper control so badly.
Only thing remaining on my wish-list now is Fences handling resolution dependent icon positions for all icons, not just the ones inside a fence. If it's not already there, that is, haven't tested in a while. Alternatively, make Fences not interfere with other applications repositioning non-fenced icons (I haven't conclusively verified Fences is actually the cause of that interference, but I can do the testing on that if desired).
Someone mentioned in another thread that they'd not buy Fences if/when it's charged for. I agreed until the wallpaper issue was fixed. Now, assuming a sane price, I would most likely buy. With added icon handling, definitely.