Setting 1: First specific settings. Does not work, any new files created/saved to the desktop appear outside fences on the desktop.

Setting 2: No specific file types selected, just relying on the general "By default" rule sending new icons to specific fence.

They do not go there, again they go to the desktop outside the fences.

3rd Setting: Just activate everything in the specific file types section. To no effect, any and all new created, saved and downloaded items
do not go where they are told, they appear on the desktop outside the fences.

Finally, the only thing not show is I have the box ticked for "Keep rules applied at all times".

Any help or suggestions would be appreciated.

It's easier to just say that the "Change the order in which rules are applied" section is in the same order as the specific file types list shown in the above screenshots, the order is the same as that.

The only other program I have running that somewhat involves the desktop is Object Desktop, only being used to change file icons and that's it.

I have an anti-virus program, but there's been no conflict with that at all.. and what's UAC?

Oh that, yeah that is active, but it's never come up since I first started using Fences.

For completeness sake, try adding exceptions for Fences (and its dlls) and see if that helps.

At this point, I would send an email to support@stardock.com and list everything you've tried.  We'll need to take a closer look.