Using the Desktop is as simple as dragging items you wish to use routinely to the desktop. The default desktop will include a folder of your home directory (/home/[user name]). By default the GNOME File Manager window will also appear for you to access other areas of your system.
To utilize drag and drop you need to be using either a GNOME compliant application or a Motif application. GNOME is compliant with Motif drag and drop so you will find it works with many applications you already have installed.
All items that are stored on your desktop are located in the following directory:
$/home/[user name]/desktop/
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