(Sorry to bring this one up again)
I've still got some problems, as illustrated here:

When the wallpaper is changed to Fill With Background Color Only
1) lxpanels retain the prior background, even though they are set to "Solid Color with Opacity" and Opacity=0. Issuing a "lxpanelctl restart" gives a black background to the panel with bad raster lines.

2) gdesklets show the prior wallpaper as background. Not a LXDE issue I suspect BUT! If any one of the desklets is re-started (from their context menu) the gdesklets daemon dies (silently). If I try to restart it, the following results:
[bb@townsend ~]$ gdesklets
Starting gdesklets-daemon...
Connected to daemon in 606 milliseconds.
The program 'gdesklets-daemon' received an X Window System error.
This probably reflects a bug in the program.
The error was 'BadDrawable (invalid Pixmap or Window parameter)'.
(Details: serial 312 error_code 9 request_code 14 minor_code 0)
(Note to programmers: normally, X errors are reported asynchronously;
that is, you will receive the error a while after causing it.
To debug your program, run it with the --sync command line
option to change this behavior. You can then get a meaningful
backtrace from your debugger if you break on the gdk_x_error() function.)
Could not open desklet /usr/lib/gdesklets/Displays/Clock/clock.display.
Could not open desklet /usr/lib/gdesklets/Displays/Quote-of-the-Day/quote.display.
Could not open desklet /home/bb/.gdesklets/Displays/GoodWeather/GoodWeather.display.
[bb@townsend ~]$
(Starting it with --sync results in the same error)
To correct both these issues, I need to log out and back in again.
ted
[mod] The logout issue appears solved though! Maybe this should be a new thread? If so please split.tx!