Discovered this through a fellow twitter-er and i must say it’s something very useful for someone like me as i usually clutter my desktop with stuff and when it’s presentation time, I select all icons and dump it into a folder. 
But then, I for get to put them back onto the visible desktop so i start harassing my desktop with new stuff again :-S I remember once, I ended up with a couple of gigs on my desktop folder hehe
Also, it seems to run great on Windows 7. Try it out today http://www.stardock.com/products/fences/index.asp