+5  A: 
Time Machine
For the record, the CodeProject project referenced is done in .NET 1.1, but the main solution and sample solution both cleanly upgraded to 2.0 (in VS2008, for what it's worth). The only issue was changing the signing to run from the project properties instead of using an assembly attribute.
Matthew Scharley
A: 

You'll notice that Media Player on Win7 doesn't have a desk band. Instead it has tiny play/pause buttons in the thumbnail preview that appears when you mouse over the taskbar icon. You can do the same thing for your application. If you use Code Pack (http://code.msdn.microsoft.com/WindowsAPICodePack) there is a sample under Samples\Shell\ThumbnailToolbarDemo. Windows 7 only, but way less annoying than taking up an inch or two of taskbar, and just as handy when you want to insta-pause.

Kate Gregory