Applies to versions drivers version 196.75 and 197.13
For the record, I'll mention that no one should be using nVidia drivers 196.75 as they were botched and causes fan speed issues, overheating cards. Old news. However, I recalled having the same problem with them.
I'm having an issue with DeskScapes obviously caused by the latest nVidia drivers where if I set the DeskScape to fit or stretch to edges of the screen, it doesn't match the correct resolution, its slightly smaller than the desktop resolution (In my case 1680x1050). Rolling back fixes the issue.
The only workaround that I've come up with is that fortunately the DeskScape I'm running is 1680 x 1050 and I can simply set wallpaper to center and I don't notice the issue.
I've tried reinstalling DeskScapes, doesn't fix the problem.
Running an nVidia GTX 285 on Windows 7 Ultimate x64.