diff --git a/ede-desktop/DesktopIcon.cpp b/ede-desktop/DesktopIcon.cpp
index 23cc091..362897a 100644
--- a/ede-desktop/DesktopIcon.cpp
+++ b/ede-desktop/DesktopIcon.cpp
@@ -46,7 +46,6 @@
 // label offset from icon y()+h(), so selection box can be drawn nicely
 #define LABEL_OFFSET 2
 
-
 static void rename_cb(Fl_Widget*, void* d);
 static void props_cb(Fl_Widget*, void* d);
 
@@ -93,25 +92,10 @@ DesktopIcon::DesktopIcon(GlobalIconSettings* gs, IconSettings* is, int bg) :
 	micon = NULL;
 	darker_img = NULL;
 
-	/*
-	 * GlobalIconSettings is shared from desktop so we only
-	 * reference it. On other hand IconSettings is not shared
-	 * and we must construct a copy from given parameter
-	 */
-	globals = gs;
+	gsettings = gs;
+	settings = is;
 
-	settings = new IconSettings;
-	settings->name = is->name;
-	settings->cmd  = is->cmd;
-	settings->icon = is->icon;
-	settings->icon2 = is->icon2;
-	settings->type = is->type;
-	settings->key_name= is->key_name;
-	settings->full_path = is->full_path;
-
-	// x,y are not needed since x(), y() are filled with it
-	
-	// setting fonts is TODO :P
+	/* setting fonts is TODO :P */
 #if 0	
 	Fl::set_font((Fl_Font)20, "-windows-*-medium-r-*-*-14-*-*-*-*-*-*-*");
 	labelfont((Fl_Font)20);
@@ -128,7 +112,7 @@ DesktopIcon::DesktopIcon(GlobalIconSettings* gs, IconSettings* is, int bg) :
 	load_icon(ICON_FACE_ONE);
 	fix_position(x(), y());
 
-	//Use desktop color as color for icon background
+	/* use desktop color as color for icon background */
 	color(bg);
 
 	align(FL_ALIGN_WRAP);
@@ -138,11 +122,8 @@ DesktopIcon::DesktopIcon(GlobalIconSettings* gs, IconSettings* is, int bg) :
 DesktopIcon::~DesktopIcon() { 
 	E_DEBUG("DesktopIcon::~DesktopIcon()\n");
 
-	if(settings)
-		delete settings;
-	if(micon)
-		delete micon;
-
+	delete settings;
+	delete micon;
 	delete darker_img;
 	delete imenu;
 }
@@ -184,8 +165,8 @@ void DesktopIcon::load_icon(int face) {
 }
 
 void DesktopIcon::update_label_size(void) {
-	labelsize(globals->label_fontsize);
-    lwidth = globals->label_maxwidth;
+	labelsize(gsettings->label_fontsize);
+    lwidth = gsettings->label_maxwidth;
     lheight= 0;
 
 	/*
@@ -344,14 +325,14 @@ void DesktopIcon::draw(void) {
 		E_DEBUG(E_STRLOC ": DesktopIcon icon redraw\n");
 	}
 
-	if(globals->label_draw && (damage() & (FL_DAMAGE_ALL | EDAMAGE_CHILD_LABEL))) {
+	if(gsettings->label_draw && (damage() & (FL_DAMAGE_ALL | EDAMAGE_CHILD_LABEL))) {
 		int X = x() + w()-(w()/2)-(lwidth/2);
 		int Y = y() + h() + LABEL_OFFSET;
 
 		Fl_Color old = fl_color();
 
-		if(!globals->label_transparent) {
-			fl_color(globals->label_background);
+		if(!gsettings->label_transparent) {
+			fl_color(gsettings->label_background);
 			fl_rectf(X, Y, lwidth, lheight);
 		}
 
@@ -365,7 +346,7 @@ void DesktopIcon::draw(void) {
 		fl_color(FL_BLACK);
 		fl_draw(label(), X+1, Y+1, lwidth, lheight, align(), 0, 0);
 
-		fl_color(globals->label_foreground);
+		fl_color(gsettings->label_foreground);
 		fl_draw(label(), X, Y, lwidth, lheight, align(), 0, 0);
 
 		/* restore old font */
@@ -373,7 +354,7 @@ void DesktopIcon::draw(void) {
 
 		if(is_focused()) {
 			/* draw focused box on our way so later this can be used to draw customised boxes */
-			fl_color(globals->label_foreground);
+			fl_color(gsettings->label_foreground);
 			fl_line_style(FL_DOT);
 
 			fl_push_matrix();
diff --git a/ede-desktop/DesktopIcon.h b/ede-desktop/DesktopIcon.h
index b8bded4..60c20e8 100644
--- a/ede-desktop/DesktopIcon.h
+++ b/ede-desktop/DesktopIcon.h
@@ -31,8 +31,8 @@ class Fl_Menu_Button;
 
 class DesktopIcon : public Fl_Widget {
 private:
-	IconSettings* settings;
-	const GlobalIconSettings* globals;
+	IconSettings*             settings;
+	const GlobalIconSettings* gsettings;
 
 	int  lwidth;
 	int  lheight;
diff --git a/ede-desktop/Wallpaper.cpp b/ede-desktop/Wallpaper.cpp
index d5bbc55..67a96bd 100644
--- a/ede-desktop/Wallpaper.cpp
+++ b/ede-desktop/Wallpaper.cpp
@@ -363,6 +363,8 @@ static void create_tile(Fl_Image* orig, Fl_RGB_Image** copied, int X, int Y, int
 Wallpaper::~Wallpaper() { 
 	if(rootpmap_pixmap)
 		XFreePixmap(fl_display, rootpmap_pixmap);
+
+	delete stretched_alloc;
 }
 
 void Wallpaper::set_rootpmap(void) {
@@ -396,13 +398,18 @@ bool Wallpaper::load(const char* path, WallpaperState s) {
 		create_tile((Fl_Image*)i, &tiled, x(), y(), w(), h());
 		image(tiled);
 	} else if(s == WALLPAPER_STRETCH) {
-		Fl_Image* stretched;
+		Fl_Image* stretched = NULL;
 
 		if(i->w() == w() && i->h() == h())
 			stretched = i;
 		else {
+			/* valgrind reports it as possible lost, but FLTK should free it */
+			delete stretched_alloc;
+
 			stretched = i->copy(w(), h());
 			i->release();
+
+			stretched_alloc = stretched;
 		}
 
 		image(stretched);
diff --git a/ede-desktop/Wallpaper.h b/ede-desktop/Wallpaper.h
index f743f10..54d1605 100644
--- a/ede-desktop/Wallpaper.h
+++ b/ede-desktop/Wallpaper.h
@@ -22,14 +22,19 @@ enum WallpaperState {
 	WALLPAPER_TILE
 };
 
+class Fl_Image;
+
 class Wallpaper : public Fl_Box { 
 private:
 	Pixmap         rootpmap_pixmap;
 	WallpaperState state;
+	Fl_Image*      stretched_alloc; /* FLTK issue */
 
 	void set_rootpmap(void);
 public:
-	Wallpaper(int X, int Y, int W, int H) : Fl_Box(X, Y, W, H), rootpmap_pixmap(0), state(WALLPAPER_CENTER) { }
+	Wallpaper(int X, int Y, int W, int H) : Fl_Box(X, Y, W, H), 
+	rootpmap_pixmap(0), state(WALLPAPER_CENTER), stretched_alloc(NULL) { }
+
 	~Wallpaper();
 
 	bool load(const char* path, WallpaperState s);
diff --git a/ede-desktop/ede-desktop.cpp b/ede-desktop/ede-desktop.cpp
index c32b699..d641604 100644
--- a/ede-desktop/ede-desktop.cpp
+++ b/ede-desktop/ede-desktop.cpp
@@ -376,17 +376,19 @@ void Desktop::save_icons_positions(void) {
 		E_WARNING(E_STRLOC ": Unable to store icons positions\n");
 }
 
-bool Desktop::read_desktop_file(const char* path, IconSettings& is) {
+IconSettings* Desktop::read_desktop_file(const char* path) {
 	E_ASSERT(path != NULL);
 
 	edelib::DesktopFile dconf;
 	if(!dconf.load(path)) {
 		E_WARNING(E_STRLOC ": Can't read %s (%s)\n", path, dconf.strerror());
-		return false;
+		return NULL;
 	}
 
 	char buf[128];
-	int bufsz = sizeof(buf);
+	int  bufsz = sizeof(buf);
+
+	IconSettings* is = new IconSettings;
 
 	/*
 	 * Check for 'EmptyIcon' key since via it is determined is icon trash type or not 
@@ -395,47 +397,48 @@ bool Desktop::read_desktop_file(const char* path, IconSettings& is) {
 	 * FIXME: any other way to check for trash icons ???
 	 */
 	if(dconf.get("Desktop Entry", "EmptyIcon", buf, bufsz)) {
-		is.type = ICON_TRASH;
-		is.icon = buf;
+		is->type = ICON_TRASH;
+		is->icon = buf;
 	} else
-		is.type = ICON_NORMAL;
+		is->type = ICON_NORMAL;
 	
 	if(!dconf.icon(buf, bufsz)) {
 		E_WARNING(E_STRLOC ": No Icon key, balling out\n");
-		return false;
+
+		delete is;
+		return NULL;
 	}
 
-	if(is.type == ICON_TRASH)
-		is.icon2 = buf;
+	if(is->type == ICON_TRASH)
+		is->icon2 = buf;
 	else
-		is.icon = buf;
+		is->icon = buf;
 
 	edelib::DesktopFileType dtype = dconf.type();
 	if(dtype == edelib::DESK_FILE_TYPE_LINK) {
-		is.cmd_is_url = true;
+		is->cmd_is_url = true;
 		dconf.url(buf, bufsz);
 	}
 	else {
-		is.cmd_is_url = false;
+		is->cmd_is_url = false;
 		dconf.exec(buf, bufsz);
 	}
 
-	is.cmd = buf;
+	is->cmd = buf;
 
 	if(!dconf.name(buf, bufsz)) {
 		E_DEBUG(E_STRLOC ": No Name key\n");
-		is.name = "(none)";
+		is->name = "(none)";
 	} else
-		is.name = buf;
+		is->name = buf;
 
-	return true;
+	return is;
 }
 
 bool Desktop::add_icon_by_path(const char* path, edelib::Resource* conf) {
 	E_ASSERT(path != NULL);
 
-	IconSettings is;
-	bool can_add = false;
+	IconSettings* is = NULL;
 	const char* base = get_basename(path);
 
 	/*
@@ -445,53 +448,50 @@ bool Desktop::add_icon_by_path(const char* path, edelib::Resource* conf) {
 	 * to be always present, or .desktop does not have to be Desktop File at all
 	 */
 	if(edelib::str_ends(path, ".desktop")) {
-		if(read_desktop_file(path, is))
-			can_add = true;
+		is = read_desktop_file(path);
 	} else {
 		edelib::MimeType mt;
 
 		/* then try to figure out it's mime; if fails, ignore it */
 		if(mt.set(path)) {
 			E_DEBUG(E_STRLOC ": Loading icon as mime-type %s\n", mt.icon_name().c_str());
-			is.icon = mt.icon_name();
+
+			is = new IconSettings;
+			is->icon = mt.icon_name();
 			/* icon label path's basename */
-			is.name = base;
-			is.type = ICON_FILE;
-
-			can_add = true;
-		} else {
-			E_DEBUG(E_STRLOC ": Failed mime-type for %s, ignoring...\n", path);
-			can_add = false;
+			is->name = base;
+			is->type = ICON_FILE;
 		}
 	}
 
-	if(can_add) {
-		/*
-		 * key_name is section in config file with icon X/Y values
-		 * FIXME: this should be named 'section_name'
-		 */
-		is.key_name = base;
+	if(!is)
+		return false;
 
-		/* random_pos() is used if X/Y keys are not found */
-		int icon_x = random_pos(w() - 10);
-		int icon_y = random_pos(w() - 10);
+	/*
+	 * key_name is section in config file with icon X/Y values
+	 * FIXME: this should be named 'section_name'
+	 */
+	is->key_name = base;
 
-		if(conf) {
-			/* we load positions from used ede-desktop-icos.conf only */
-			conf->get(base, "X", icon_x, icon_x, edelib::RES_USER_ONLY);
-			conf->get(base, "Y", icon_y, icon_y, edelib::RES_USER_ONLY);
-		}
+	/* random_pos() is used if X/Y keys are not found */
+	int icon_x = random_pos(w() - 10);
+	int icon_y = random_pos(w() - 10);
 
-		E_DEBUG(E_STRLOC ": %s found with: %i %i\n", base, icon_x, icon_y);
-		is.x = icon_x;
-		is.y = icon_y;
-		is.full_path = path;
-
-		DesktopIcon* dic = new DesktopIcon(gisett, &is, color());
-		add_icon(dic);
+	if(conf) {
+		/* we load positions from used ede-desktop-icos.conf only */
+		conf->get(base, "X", icon_x, icon_x, edelib::RES_USER_ONLY);
+		conf->get(base, "Y", icon_y, icon_y, edelib::RES_USER_ONLY);
 	}
 
-	return can_add;
+	E_DEBUG(E_STRLOC ": %s found with: %i %i\n", base, icon_x, icon_y);
+	is->x = icon_x;
+	is->y = icon_y;
+	is->full_path = path;
+
+	DesktopIcon* dic = new DesktopIcon(gisett, is, color());
+	add_icon(dic);
+
+	return true;
 }
 
 DesktopIcon* Desktop::find_icon_by_path(const char* path, DesktopIconListIter* ret) {
diff --git a/ede-desktop/ede-desktop.h b/ede-desktop/ede-desktop.h
index 9467179..f7bf6e2 100644
--- a/ede-desktop/ede-desktop.h
+++ b/ede-desktop/ede-desktop.h
@@ -3,7 +3,7 @@
  *
  * ede-desktop, desktop and icon manager
  * Part of Equinox Desktop Environment (EDE).
- * Copyright (c) 2006-2008 EDE Authors.
+ * Copyright (c) 2006-2009 EDE Authors.
  *
  * This program is licensed under terms of the 
  * GNU General Public License version 2 or newer.
@@ -38,7 +38,6 @@
 #define ICON_FACE_ONE 1    // use icon
 #define ICON_FACE_TWO 2    // use icon2
 
-
 struct GlobalIconSettings {
 	int  label_background;
 	int  label_foreground;
@@ -118,7 +117,7 @@ private:
 
 	void load_icons(const char* path);
 	void save_icons_positions(void);
-	bool read_desktop_file(const char* path, IconSettings& is);
+	IconSettings* read_desktop_file(const char* path);
 
 	void add_icon(DesktopIcon* ic);