Desktops v1.0, a new addition to the Windows Sysinternals Utilities listing, allows you to organize your applications on up to four virtual desktops (similar to Virtual Desktop Manager PowerToy for Windows XP).
You can switch desktops using hotkeys, or alternately, you can right-click the Desktops icon in the Notification area and click Select Desktop to switch to another virtual desktop. Desktops works fine in Windows XP as well as in Windows Vista.

Screenshot of Desktops v1.0 Options page
(Download Desktops v1.0 from Windows Sysinternals.)
Editor’s note: When I used the CTRL+ALT+DEL key sequence to bring up Task Manager from 2nd, 3rd and 4th virtual desktops, nothing at all happened except a brief hourglass. Instead the Task Manager window showed up in the 1st desktop. (bug?) However, I was able to launch Task Manager in the 2nd, 3rd and 4th virtual desktops by running Taskmgr.exe manually.
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Find VirtuaWin – it makes sysinternals desktops piece of useless toy.
This is a good one. I agree with Bryan’s comment that it would have been nice to have a way to send already running programs to a different desktop. Also I did not have a trouble using ctrl+alt+del or ctrl+shift+esc from any of the desktops. I could see the task manager just fine. I am using Vista Home Premium. I dont know if there is some OS specific behavioral change.
It’s pretty slick. I just wish I could send already running programs to another virtual desktop. All in all, I like it.