No.. What I meant was, the programs remain the same. So for example, I could have 5 applications running and listed on the taskbar, And I would have one application, say photoshop maximized on 'Desktop1'. Then when I switched to 'Desktop2', the buttons on the taskbar would remain the same.. all the same programs listed.. the only difference is, photoshop is minimized, and I can have a different application maxmimzed.
So there would be no real point to the virtual desktops then. Since all it does differently is have multiple progams 'maximized'
But I figured it out now, I did have it configured improperly. The correct way was to go to right click on the MSDVM applet and uncheck 'Shared Desktops'
Now it seems to be working properly. I have three different applications running on desktop one.. and three other applications running on desktop two. The applications are different in the taskbar now.