Yeah, I thought about that too, but it made no difference either.
The resolution for all monitors are 1680X1050, so I set the coordinats to "0,0,1680,1000".
At first I set the area to "0,0,0,1000". Didn't do much either....
Just a thought.... (might make me look stupid) but....
In theme.rc there's a line
include "$ConfigDir$jdesk.rc"
but there is no such file in that dir.... Could that be it?
(Remember, I have absolutely no knowledge of how LS works)

I'll investigate more in the morning. Am getting a bit cross-eyed, so I'd better f'off to bed.