"Show Desktop" is a shortcut which is present in Quick Launch toolbar in Windows taskbar. Once you click on its icon, it minimizes all running programs to taskbar so that you can view the Desktop.
Since Microsoft integrated the Quick Launch toolbar in taskbar in Windows 7, you'll no longer see the old "Show Desktop" icon. But that doesn't mean it has been removed in Windows 7.
Actually the location and look of "Show Desktop" has changed in Windows 7. Now its located at the end of taskbar in form of a small rectangle.

It does 2 jobs now:
1. When you move your mouse cursor over it, it hides all running programs windows and shows only windows outlines so that you can peek behind all open windows . Its called "Aero Peek" feature.
2. When you click on it, it does the same job as the old shortcut used to do. It minimizes all open windows and restores them if you click again.
Also see: How to Get the Good Old "Quick Launch" Toolbar and "Show Desktop" Shortcut Back in Windows 7?
This article was posted by VG in following section: Windows 7.
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mike
I used to view my jpg in vista (picture and fax viewer). I can choose the theme of the slideshow.
but windows 7 allow slideshow only in default mode. no fade in or out effect of other setting that makes the slideshow interesting.
how to have the slideshow setting in windows 7?
VG
^^ Try to follow this tutorial:
http://www.askvg.com/trick-to-increase-windows-vista-performance-experience-index-upto-99/
Harry
i was looking for Desktop shortcut and i couldn't find it and i was wondering that there is no desktop shortcut in Windows7.......i got it now.......amazingggggggg
Lee Asher
Personally I think it should be in BOTH corners.
Lee
Renwald
The Win7 show desktop button has got to be the all time greatest cock up of all time. Don't get me wrong the feature has potential. You just have no control eg. removal if it does not suit. Its a major bugbear for new users or handicapped users. Too easy to click on the button and then need to spend unessessary time explaining what has happened.
Come on Microsoft! At least give us the option to move/remove the feature.
A Classic WOFTAM! (Waste Of Friggin Time & Money)
real me
I don't know why everyone is complaining about the changed show desktop feature. Sure, I was a bit skeptical at first, since I'm so used to moving my hand to the left, but it really is NOT difficult to move my hand to the right. I don't have to lift my arm; I can do it in one motion; and I use a dual monitor setup as well and I can click it without relying on the screen's boundary.
Maybe you guys use a really low mouse speed/acceleration, which makes you need to lift your arm to get to the bottom left. I agree it should be movable, but I do like it where it is, and if it does become movable, I probably won't move it. I think the right is an intuitive spot for it. And honestly, if it's a bad spot for you, isn't it easier anyway to use your left hand (which is likely not doing anything) to press Win + D? If you don't have a functional left hand, then your complaint is a little more acceptable.
What does need to be improved in Win7 is the thing where you drag a window to the border of a screen and it automatically sizes it. I like it, but it won't work on the center borders with a dual-monitor setup.
Other than that tiny gripe, Windows 7 has pleased me like no other Windows update has before it. It really is a major improvement. I'm sure most of the complaints are fueled by a reluctance to change.
That's my $0.02.
Natasha
THANK YOU!!!! This is one thing that has been driving me crazy since I got my new computer! I agree this is one area where I don't like the change! BUT now that I know where it is I am a lot happier!
Sarah
WOOT! THANK YOU!! Wow, how long have I had this dang platform and not realized that was even there!
So long, right click, choose show desktop super-long-method!!
BerToptygin
BAD WORD BEEP!
I use mouse for opening progs. Usually mouse cursor on the left side. Now I must search for desktop shortcut on the right side. It's bored me!
Bring desktop shortcut back to left side!!!
michel
You can also use the keyboard shortcut windows key + D