neil, after reinstalling deskscapes 8 and rebooting, the desktop icons are still visible and the quick-hide feature of fences does not work. sorry. i hate being the bearer of bad news.
Could you contact support@stardock.com as the issues you are having are not normal or expected and we have never seen them before.
Also is this Fences 2 or 1 Pro and have you made any changes to make Fences start up quicker after login?