Why does everybody think it's bad to have a boring, single color desktop? I can't stand having background images on mine.
ICQ multi-user thing? You mean the floating names? Just click somebody in the contact list and select 'Floating On'. That pops up an always-on-top icon of their name so you don't have to bring up the ICQ window to message them or see their status, and you can drag it around.
I believe he may have Active Desktop turned on. The bar on the left is only a "New Toolbar" that represents specific folders on his hard drive, where he has stored shortcuts. However, I can't find a way to break that off as a separate toolbar from the main one. I know it's possible, but I think it may require active desktop. I only tried it once WAY back when IE4 first came out and multiple toolbars became available, and I never did it again.