Virtual Desktop Manager is neat (Linux/UNIX has had virtual desktops for years) and stops a lot of screen clutter, particularly if you're using a single monitor setup. You can have one app. executing in one desktop while you're working in another and easily switch between the two (or four).
But the icons and icon layouts on the different desktops are the same - VDM won't help you reduce icon clutter. The best way is to follow my suggestion above and create submenus on the Start button.
It just makes sense to group similar programs together - I have for instance:
Graphics - all the drawing and imaging stuff
Security - security stuff
System - system stuff
Word processors - WPs
and so on. Make life much easier.
(I actually tend to put my submenus down in the Quick Launch toolbar - it just seems neater to me)
