Virtual desktop works fine for me in 1.1.23, openSUSE 11.1. Have you checked that there are no Wine processes still running in the background? That can prevent changes to winecfg from taking effect.
Virtual desktop works fine for me in 1.1.23, openSUSE 11.1. Have you checked that there are no Wine processes still running in the background? That can prevent changes to winecfg from taking effect.