A little more information is here.

To prevent other files the same appearing of Desktop try right click , select Properties & mark Hide box.

All this is , like the previous post stated, is a bug in Outlook Express. Actually, its a bug in one of the Xp updates. It shows up whenever a new contact is added to your address book. It's harmless and M$ has ignored it so far. They're probably not going to do anything about it, with Longhorn (or whatever the name is now) being close to it's release.

Dell Dimension 4400/Windows XP Home SP1 with all updates
Norton AV 2003

2.4Ghz P4 400fsb w/ int. sound mobo
768 PC2100 ddr sdram
15" E151fp flat panel monitor
Ati Radeon 7500 64 Mb ddr agp card
20 Gb W.D. master H.D.
60Gb W.D. secondary H.D.
Sony DWU14ABK 4X/4X/12X DVD +/- RW
Sony DDU 1621 16X DVD-ROM
Leadtek Winfast TV2000Xp TV tuner card
Soundblaster Live! 5.1 Digital
4 port USB 1.1
4 port firewire PCI adapter card
Conextant V.92 data/fax modem
Belkin 4 port powered USB 1.1 hub
Harmon Kardon speakers
H.P. 930c Deskjet printer
H.P. 5400c Scanjet scanner
Sony TRV 330 Digital 8 HandyCam
Olympus Camedia D-390 digital camera
Intel ProPac Web cam
Palm IIIXE
Realistic LAB-310 Turntable
TEAC W-350 Dual Cassette Deck
Panasonic PV-4523S VCR

Thanks, all, I appreciate the quick responses. I'll just deal with it until Microsoft issues the fix (*yawn*). Somebody wake me when its ready?