I haven't tried it on Windows 7 but it works in Vista Vista Start Menu – Convenient alternative to Start menu
Obliquely, I managed to get rid of all my desktop icons with this technique. I made a folder in Documents to hold other folders. Each subfolder has a different category such as Net, Code(for programming),Edit, Vid, Sys, Util and put my icons in the folders. I then dragged each category folder onto RocketDock. Nice and clean. Don't have to worry about icon positions or any of that nonsense.
edit: btw it helps too if you turn off text for the category folders and just use a custom icon that gives the idea. Reduces the space each one takes up on RocketDock.
Here's a shot of just the custom folder section of my RocketDock panel