Trouble Navigating Through Files Using Explorer

When I run Windows Explorer, and look at the list of folders on the left
screen, I see several instances of "Desktop".

The list of folders reads:

Desktop
Steve
Contacts
Desktop
Documents
(and so on . . . )

The first instance of Desktop has a blue icon and shows folders in it that I
have deleted from my "real" desktop on my screen by right clicking them and
selecting "Delete". (They include shortcuts like "Computer, Network, and
Internet Explorer)

The second instance of Desktop has a green folder and doesn't show some of
the shortcuts on my "real" desktop. (Such as Skype, QuickTime, and others.)

What's going on??
Please help.

Dell Studio 540 4gig Ram
Windows Vista Home Premium