I just upgraded to 2.1. Their seems to be a space below the panel when it is set to be on the bottom of the screen. When I slide apps they are visible beneath the panel. Essentially, it's as if someone moved the panel the "height" of one "tiny" panel up from the bottom and the desktop is visible beneath it. This seems to be the case no matter what size I make the panel.
Rotating the panel to one of the other positions and then back to the bottom seems to "fix" this. After that the "fix" takes. Even after several restarts of X the panel is back where it belongs. Jesse (note: I did several restarts of X before that but it didn't seem to fix it)