Preheat oven to 350 degrees. In a medium bowl beat flour and butter until blended. Stir in walnuts. Spread mixture into bottom of a greased 9 x 13-inch baking dish. . Bake 25 minutes or until golden brown. Cool in dish on a wire rack. In a medium saucepan, combine granulated sugar, cornstarch and gelatin. Reserving juice, drain and slice apricots. Add enough water to reserved apricot juice to make 1 3/4 cups. Stir juice mixture into sugar mixture. Stirring constantly, cook over medium heat until mixture thickens and becomes clear (about 26 minutes).
Cool to room temperature. Stir apricots into gelatin mixture. In a medium bowl, beat cream cheese, confectioners sugar, and vanilla until fluffy. Fold in whipped cream. Spread cream cheese mixture over cooled crust. Spoon apricot mixture over cream cheese layer. Cover and chill 4 hours or until set. To serve, cut into 3-inch squares. Store in an airtight container in refrigerator.