We are well aware of Dexpot, and we can, without a doubt, state that they do not support Windows Auto Arrange and Auto Align. Instead, they fake the Auto Align (by detecting the event and then turning it off again), which is why their desktop icon management is so clunky, and why Auto Align never stays "on".
While our "bug" is that we don't support auto aligned desktop icons, their "bug" is that their auto alignment is clunky, ugly, and does not work all the time. Again, to be perfectly clear, we understand that from your point of view their software "works" with Auto Align and ours does not, and we do not dispute that.
At this point we would usually launch into a technical discussion of the drawbacks of their methods and the advantages of the method we're researching. I don't believe this would be helpful in this case, but regardless we believe we have far better solution, one that correctly handles Auto Arrange and Auto Align. If our research pans out it will be a far better solution to the one Dexpot uses. If our research doesn't pan out then we can fallback to a Dexpot-like solution. This is a last resort, however.
We hope you'll spend some time ttying out the new Auto Align feature (or bug fix

) when we release it!