Windows 7: Unintended Consequence: Desktop now tops Library hierarchy

Windows 7 Home Premium 64 bit



This is definitely a Homer Simpson type development.

I was transferring files from my laptop desktop to its Documents folder to make them available to my desktop computer through HOMEGROUP. Inadvertently, my touch pad input was active while I was also using a mouse - right hand on mouse - left palm resting on touch pad. I didn't realize what was happening soon enough ... Attached is a screenshot of the result


I've reset the libraries to default but all are grouped under the newly placed Desktop.

It's operable and nothing seems unstable although some "true" Destop files have a desktop.ini in them. While I do realize that libraries are generally collections of shortcuts, I do not know enough about the library setup and methods to resolve this.
Any help would be appreciated.

Blake