There are many desktop enhancements available today. They vary mainly on how they implement the enhancements that they support. These enhancements range from creating multiple desktops, providing additional toolbars, displaying calendars and to-do lists, and many others.
If you are like me who messes my desktop with lots of files and folders aside from the shortcuts generated by my installed software, then we may be in for a beautiful cleanup without deleting or transferring those files and folders. The answer is Stardock's Fences.
Fences is a very small software which you can download and install. It has a very small footprint on my system and works perfectly in tidying up my desktop. Fences groups files and folders into a container which has a label in it so you can drag anything to go in that container. Shortcuts also has a separate container as well as the usual links like My Computer, Recycle Bin, etc. Fences floats over your desktop and can be customized and you can add several containers to further group your items in your desktop.
You can download Fences here.