Your icons aren't going to display in that folder as Explorer is displaying the directory contents for "C
Users\Username\Desktop". What you want is a folder that can be accessed by click caret (arrow) next to the folder icon on the Address Bar then selecting Desktop.
Q9550 @ 3400MHz on 1.18125 vCore
Corsair 4x2GB PC2-6400 @ 5-5-5-18, 800MHz, vDIMM=1.8
WD5000AAKS, P35-DS3L, ASUS DRW-2014L1T,
Antec Earthwatts 500W, 7900GS
Windows 7 x64