We were able to reproduce this issue here as well, and we've added it to our list for further investigation.

Thanks!

We've just released a new DisplayFusion beta version (http://www.displayfusion.com/Download/Beta/) and this issue should be all fixed up. You need to manually enable/disable input to the website wallpaper using the DisplayFusion tray right-click menu (right-click > Desktop Wallpaper Settings > Toggle Website Wallpaper Input). When input is disabled, you should be able to drag the desktop icons as normal. Please let us know if you run into any trouble after updating.

Thanks!