Welcome to Virtual Dimension: a free, fast, and feature-full virtual desktop manager for Windows platform. The main goal of this open-source project is indeed to enhance the Microsoft "Window Manager" up to the level of usual Unix Window Manager, by providing virtual desktops, as well as some additional features, like always on top, window shading...
I guess those already used to working with any flavor of Unix and X11 have already understood the interest of such a project. In my opinion, anybody who used it for more than a couple of minutes may find it hard to revert to a single desktop. However, some people, most probably Windows users, may not understand what this is.
So, first of all, what is a virtual desktop? Simply said, a "desktop" is what you see when you run windows: the actual windows desktop, with the icons on it; some open windows; some minimized windows. The main goal of the project is thus to allow working with only some of the applications visible at a time. Later, some other windows may be visible. The program thus allows to have a few set of applications/windows, where you can simply choose which group is visible, and switch between one group or the other.
Now, one may ask what is the interest of such a thing ? Well, this is quite simple. If you only have a few windows open at any time, I guess there isn't much interest. However, if you are working with lots of applications, you desktop can easily become overcrowded: you lose time finding your windows, taskbar buttons are too small for you to read the text and find the right window, using drag and drop becomes a nightmare... The solution is Virtual Dimension.
Indeed, using Virtual Dimension, you could have all your chat and irc windows on one virtual desktop; your email client and browser windows on another; and your text editor and debugger on a third one. This way, you only have what you need before you, yet you can easily switch to another desktop when you need to access the other applications.