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I thought I would let people know, I have found a great free app:

http://www.everydaysoftware.net/showdesktop/

Which acts exactly the way I wanted, can be built into the menu-bar or put into the dock. One click and the windows are hidden (including Finder windows).

My experience is getting better :apple::D

The only thing. I am still feeling strange about mouse navigation in MacOS X, it feels "imprecise", especially when trying to aim at a small object like red closingX or a corner of a window. The trackpad doesnt have this problem.
My mouse feels artificial! Am I the only one?

And yes, I have installed Logitech's drivers, and tried to tinker with the mouse tracking speed settings. :(

Important to mention - in WinXP in Bootcamp, the mouse comes back to life again.

EDIT: I have found another topic on similar problems with the mouse in OS X
http://forums.macosxhints.com/archive/index.php/t-63077.html

I am not the only one at least :)

Any thoughts guys?
 
You could also enable expose from the system preferences menu, then put in a hot corner for desktop. I love spaces and expose, give them a try.

Z
 
I guess I will answer my own question now, maybe some new mac users like me will find it helpful -> I have "restored" the normal mouse feel, I was used to as a WinXP user.

To do that, get a SteerMouse Application and set the values to:
0.05 for tracking speed
175 for sensitivity

you may adjust it to your likes, but I found these settings to be most comfortable.

(I am using VX Revolution)
 
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