The machine I had this problem with is the following:Windows Vista Ultimate with Service Pack 1Intel Core Duo 6700 CPU256Mb ATI Radeon 3850 running Catalyst 8.3 drivers and dual DVI monitors4GB System RAM After upgrading from the previous pre-release version of Deskscapes 2 to version 1.95(

.028 I had the same issue as describe above - notably no Dreams would display and when selected, the normal Deskscapes options menus would appear only momentarily before going back to the usual Wallpaper size/postion options.I uninstalled Deskscapes, rebooted and re-installed version 1.02, but that then had exactly the same problems.From there I upgraded directly to version 1.95(

.028 again, rebooted and Deskscapes started working perfectly again.Still all working so far....
Well, after taking the risk and letting Stardock Central update Deskscapes from 1.95(

.028 to 2.00.052 I had exactly the same problems again. Fortunately the same solution worked, although it's a pain in the posterior as it requires so many reboots.
Strip off version 2, reboot, find, download and install version 1.02, reboot, allow Stardock to update to version 2.00.052, reboot - Deskscapes works again (finally!)