Microsoft has released a new product of SysInternals called Desktop V1.0.  It is a simple utility to visualize your desktop offering up to four virtual desktops.  You can activate different desktops by either using the icon in the system tray or by hotkeys.  When you first install it,  you have the option of setting the hotkeys for desktop switching:

As mentioned you can also active a different desktop by selecting the icon in the tray:

When you click on the tray icon it displays a panel to select the desktop you want:

When you switch to a different desktop, all your background and any icons you have on the desktop are replicated to your other desktops.  The taskbar in each desktop only displays the apps running on that specific desktop and some tray icons may be missing.

All seems okay and could be useful since it even detects my dual monitors, but all is not a go on my Vista 64 system.  The scroll wheel on my mouse only works in the primary desktop, others do not seem to detect the scroll wheel (that is a show-stopper for me, I will not use a system without a scrollwheel).  But beyond this, some useful system tray icons do not carry across all desktops and while writing the post, I did have a quirk where it would not access the icons on my primary desktop for a period of time.

UPDATE: I had an IE instance open in my primary desktop and when I would double click a link on the desktop in one of the virutal desktops, it would open a tab inside the IE instance in my primary desktop.  Had a lot of tabs open in that instance before I found out what was going on ;)

Seems like, on my system at least, I will have to wait for Version 2.

Here is the link if you wish to try it out for yourself:

http://technet.microsoft.com/en-us/sysinternals/cc817881.aspx