Clicking "Restore My Desktop" just will not do anything, how many times have I seen this one... to be honest there are probably a fair few fixes to this I have used a couple in my time yet the best I have found has to be this:
Go to Start > Run
Modify the following entry:
Change the DeskHTMLVersion key (Decimal) from 272 to 0, press ok, close down regedit and press Ctrl + F5 together.
The original desktop should now be back to normal.