[Snuffy]

As Normal User - NO, you can not rename them, No, you can not delete the folder, Yes, you delete move or rename stuff in the FOLDER..
BasicallY I still so no reason for this.

A brilliant new tweak, found by undefined, and I'm just gonna repeat his words here. How to get icons with no title on your desktop, this time for real!
Yes, old tricks are using spaces, key combinations like ALT+0160 or ALT+255 (or, for font you're using, looking with the Windows character map for the "empty space" character). Effective, you don't see the titles, but when they get focus, a small box, dotted lines, different color still shows up. Tiny, still annoying.

On the dots, btw, in 2k and XP you can make them go away (as noted by binary). Rightclick your desktop, properties, in 2k choose effects tab, in XP appearance tab, effects button. Check "hide underlined letters for keyboard navigation untill I press the alt key".
Undefined on what he found: "Since Windows hides the extensions LNK, URL, and PIF by default, if the filename is removed, the file is unnamed. But there are some limitations: only one unnamed file with a certain extension is allowed per folder, and only the three mentioned extensions create completely hidden filenames."

Regular rename option doesn't allow you to not enter a name though. You can manually do it by opening a command line window, navigate to the directory of the file, then enter:
ren filename.ext ".ext"
But he created a batch file to perform this - for NT/2k/XP only, get it here - you can just drag a shortcut onto it and it takes aways all but extension. Works only for one file.
Then again, the Win 9x DOS prompt starts at c:\windows anyhow, enter "cd c:\windows\desktop" and you're were you will most likely want to be. The 2k/XP desktop folders are in x:\Documents and Settings\"username"\Desktop\, but cmd.exe accepts clipboard content, so another great use for PathCopyEx...
But, like said, only one file named ".lnk" allowed in a folder/on the desktop. Undefined's solution, just create more extensions that behave like .lnk. Download above contains regfiles for 98 and 2k/XP. Just merge to have .lnk2 registered, you can use immediately. Rightclick, choose edit, change all occurrences of "lnk2" to "lnk3", save and merge again for a working .lnk3 extension. Etcetera. Takes a little bit of work, but effect is great.
Final note, for a completely redone desktop, you'll need to create shortcuts to items like My computer, My documents, Recycle bin, afterwards disable those. In XP, options are in display properties, the bin requires some work in all versions, and anything pre-XP works with TweakUI 1.33.

ANNOYING as hell, PS: this can not be removed on all systems.... the author says for some reason so people can not remove this....
I have taken ownership, I have logged in as Admin, I have followed all instruction... it there.
EMail from Chris says 98% works 100% the other 2% he does not know...