I have this same issue, with the desktop and other folders not refreshing automatically, and I have never heard of a program called TerraCopy, nor is there any "dontrefresh" tag in my registry. It doesn't refresh on my desktop or any folder that grows beyond a certain size. Not sure if it's the size of the folder, or the # of items in it or what, just know they get to a point where it stops working. This has occurred on every version of windows 7 I have tested it on so far, home32, pro32, and pro64. The only thing I can think of that might be at fault is I always turn off indexing because of how laggy that makes me.
...and yes, dragging a file out of the trash and it changing the name, IS a bug, whether they admit to it or not.
So many stupid things done to this OS, I really have no idea what they were thinking.