Google has a nice service that automatically backs up pictures from the "My Pictures" folder.

Unfortunately dispalyfusion stores wallpaper pics under that folder and my free storage with google is being filled up with all these wallpapers.

There is no way in google to exclude a folder.

Is there a way to change the location of the displayfusion wallpaper folder?

Under advanced settings there is a setting. Maybe that's it?

http://www.displayfusion.com/AdvancedSettings/#wallpaper-wallpaperfolderwebimages