Sorry to disappoint you, but along with the taskbar, desktop icons and other desktop functionality are something Litestep cannot fully reproduce as of now. Using XLabel's desktop functions allow you to move the icons, but you still cannot drop items on it (without additional tinkering or modules) or arrange them (AFAIK impossible).

But the problem isn't as bad as it seems, since according to my experience (and many others too), the desktop is not such an useful or irreplaceable tool. Personally I tend to keep (and always have) all applications maximized and use a C:\Temp folder to keep unneccessary stuff floating around, so what the desktop does, isn't useful anyway.

This is the trick with many LS functions and features. Everything cannot be emulated, but many things can be countered by a different (and sometimes better) computer usability philosophy.

PS: This is something I'd like to talk about more. How people prefer to do simple tasks etc. - could lead to better themes and innovations overall.