It transforms your basic, boring desktop into a awesome 3D room full of all your normal desktop icons, but you can move them around freely like they are on a piece of string. You can also put your icons into boxes which is pretty much a folder but it is 3D and you can see what is in it.
You can also change the theme of your 3D desktop as you can see here:
There are loads of different themes and looks you can choose from, you can also play little games on your desktop like basketball, which looks really cool in the 3D room.
If you would like to find out more about this piece of software then visit: http://www.real-desktop.de/menu-home.php They have a trial version you can download and try and if you like it you can buy the full version which comes with even more cool things!