I won't go into detail about that but downloads to that name and to the desktop are best avoided. There are some that lose time over this and trying to fight other names such as com1, lpt and others.
When I try to download something from the internet, I usually "point" the DL to my Desktop for ease of rapid access to the file. On a brand new Win 7 installation yesterday on one of my computers, when I attempt to point a DL to the desktop, I get the following error...
\\.psf\home\desktop\folder does not exist. The folder might have been removed or deleted. Do you want to create it? Yes/No.
If I click on "Yes", I assume the DL continues but the file does NOT appear on my Desktop, nor can I find it with Explorer.
I'm in the process of reinstalling Win 7 in hopes that I have a corrupted file causing this problem. If anyone else had solved this problem, I would appreciate hearing about the solution.
I did a google and got a MS page that stated this error did NOT apply to Win 7 and was only a XP problem.

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