It sounds like more than a "screwy desktop", but more like a rogue anti-spyware program, which goes by the name of "Windows Recovery". Have a look at the below removal guide:

Remove Windows Recovery (Uninstall Guide)

ALL the steps need to be followed. Do not click on any ads you might see, but scroll down to where it says, "Automated Removal Instructions for Windows Recovery using Malwarebytes' Anti-Malware:". Start from there.

NOTE: Step #17 (below the screenshots) includes a program, which when run, allows you to see the files the infection "hid".

Best of luck..