Took a bit of time before I could reproduce this. I haven't yet had the whole screen get shaded since I originally reported this, but here you can see the toolbar shaded: http://imgur.com/TsOxH. The log file is around 2.4MB, is there a place I could upload it?

Windows version? Dexpot version? Log file?
What does "the desktop is shaded over" mean? Can you provide a screenshot?

I have a folder, containing most of the folders I use daily, set up as a toolbar on the right of the screen. If I select a folder from this toolbar, I see the button for the folder depress, but the folder itself does not appear. That desktop also hangs up. I have Desktop Manager set up to overlay the lower end of the toolbar (where there are no folder icons) and that disappears behind the toolbar. After a time, the desktop is shaded over and becomes unusable. Occasionally the other desktops also get shaded and unusable.

The only way out is to kill dexpot. All windows come back to the one desktop, including the folder I was trying to open.