Having multiple monitors makes life easier in my opinion but even with my current work setup, I need more space. Visual Studio, Word, Outlook (and countless emails), Live Writer, browser windows, ...all take up space. Today I found on CodingProject a C++ application that shows how to create virtual desktops. On CodePlex, there is a Virtual Desktop Manger too.
If there are any takers for creating their own .Net version, Abhinaba Basu has a post that helps show where to look in the Windows API model to help create virtual desktops this along with informing about a site that makes invoking system calls a lot easier. PInvoke.net gives you the c# code to execute these functions! Here is the link for CreateDesktop in the user32.dll. Add in some WPF for some eye candy and you could do some really neat stuff!
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