Iconoid is a cool free application which let you hide the desktop icons automatically as per mouse cursor position, it will let you see the desktop wallpaper by making all the desktop icons invisible automatically when the mouse cursor is moved away from the desktop area to any other program window. When ever you move mouse on the desktop area it will again show up all the icons on the desktop with in a second.
Moreover this small program will let you perform lot more functions and which includes Save and Restore Desktop Icons Positions, Make Your Desktop Icons Background Transparent, Select any color for icon text. You can also make desktop icons to always hide the desktop icons.
You can quickly minimize the opened windows and then you can see the desktop wallpaper. This program works on windows 2000, XP, Vista and Windows 7. You can also hide all the opened tabs the windows.