Cream together butter and sugar in medium mixing bowl. Add flour and mix well. Press mixture into an ungreased 11-inch tart pan. Bake in preheated oven 25 to 30 minutes or until lightly browned. Cool.
In a medium mixing bowl, using an electric mixer set on medium speed, beat cream cheese, sugar, lemon juice, lemon peel and vanilla until smooth.
To prepare the glaze, in a small saucepan, combine the preserves and water. Stir over medium heat until melted. Strain and cool slightly.
Spread cream cheese mixture in tart shell. Arrange peaches around the outer edges of shell and place strawberries in the center. Brush with glaze. Chill until glaze is set, about 1 hour. Cut into wedges and serve.