DeskDecal
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The freeware community always provides convenient approaches to every situation. Sometimes that just means providing drag-and-drop functionality. DeskDecal is a nice application (with a slick new icon) for easily changing your desktop background. Place the app in the dock or (better yet) in the menu or sidebar of the Finder window. Now when you find an image that you would like to be your desktop background, just drop it onto DeskDecal, saving you the trouble of opening System Preferences and finding the image within the Desktop menu interface.
P.S. These are the same guys that gave us Psst!, another useful app.

...from October 7, 2007...
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