Originally Posted by TobiSGD
I would guess that there was some kind of hiccup and nautilus has shown you its internal name for the desktop folder.
I don't think that your machine is compromised (and I still wonder why this is always the first thing that comes to people's mind).
Just reboot and you should be fine.
Thanks! The reason it startled me was the folder icon for x-nautilus-desktop was the same as network. I've been reading "Ghost in the wires" so I think that was what caused me to think that way.