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Strange! I'd guess that if it's set to the red X then it's probably disabled. That would explain the taskbar offset the next time the DF taskbar reloads. There used to be another app that could hide the taskbar, called ShyBar, but I can't seem to find it any more.
It may work better if you just set the Windows taskbar to autohide, and don't use taskbar-magic at all, but I'm not 100% sure on that.