... display a specific folder contents in a fence. For example ... Since I'm in my "download" folder a lot, this idea makes it easy to for me to get in and out of the folder instead of having it open.
1. Right click your Downloads folder and select "Create shortcut".
2. Right click on the shortcut and select Properties.
3. Click in the "Shortcut key" field and type the key combination you want to use (e.g., Ctrl-Shift-D). Click Close.
From now on, typing Ctrl-Shift-D opens your downloads folder. Alt-F4 closes it.
Fences is not intended to do what you're asking. All Fences does is push icons around on your desktop then render a bit of shadow around your icon groups. The "fences" aren't content containers, so they can't actually contain anything.
Alternatively, try something like AveDesk or any of a number of other desklet/docklet/widget layer apps. If one of them doesn't have a widget/desklet for what you want, it's super easy (esp. with AveDesk) to write one that would.
Nathanael