I have exactly the same issues... Fence lite worked fine with XP SP2 32bit and 64 bit....
Now i've gone to Windows 7 Pro 64 bit on all machines (all virgin builds, not performed as upgrades) everything was perfectly fine until fences was installed...
Since then any shortcut creation, renaming, or anything that has any interaction to so with the desktop icon sets then explorer stops responding and restarts....
Remove fences... problem solved...
I have other system apps running (64 bit where possible), Daemon tools, Nero Mediahome, Linksys Network Magic, Avast AV, UltraVNC server
Have tried sequentially removing each of these with fences installed... same problem persists....
All I can surmise is that fences has some integration problem with something in my PC build...
Gigabyte GA-P55-USB3 Mobo
MSI GTX460 HAWK video card
Corsair XMS3 RAM
Intel i5 760 CPU
same on a Shuttle SD37P2 running an ATI HD3870, core 2 duo E6600
and also on a Toshiba notebook.... I can get the specs if anyone asks....
For the moment I'll be running fences free unless stardock can work some magic and tell me why these issues suddenly!
regards
Rob