I'm not quite sure what you mean by 'sending a desktop item to the desktop.' Do you mean when you right-click a file on your computer and mouse over Send To there is no option to send it to your desktop?
Let us know.
Just downloaded IE7. Cannot find a way to send a desktop icon to my desktop. It's probably so easy that I'll be embarrassed, but it should either be more intuitive, or - added if it doesn't exist. If this feature is not available, I'll switch from IE7.