Happened on another system as well running W7 Home Premium x64 on Fences 1.01.143, so it's a different system, OS and Fences release.
I'm not using a vendor version of W7. It's a stock M$ release.
I have not altered Recycle Bin's properties.
This is a user account with Administrator privilege.
I have not contacted support. I've seen this mentioned on other online forums for a long time. It's been a problem for so long that the reason I decided to fork out the money for Fences 2 was the assumption that it would be fixed, given that it's such an old problem.
BTW, the 10 bucks for the software is not an issue. I like Fences enough that I've been using it for years. Financial compensation for software that I use so much is only fair. It's just this RB problem is a pain in the backside.