1. Start with a clean install. Seriously, if you don't start fresh there may be problems (i.e. i applied tweaks and fixes, especially the explorer leak fix, and the glass effect just wouldn't work!) Also, important, make sure the sidebar is active!
2. Download this skin (theme), extract it, and put the folder named "Aero" in the Windows/Resources/Themes folder. Then, open the folder, double click aero.msstyles, and click OK in the window (Display Properties) that pops up. NOTE: If the link above for the skin does not work (which it should), just search google for "dwm skins", or "ExplorerGlass-BOFH-Beta2.rar" and you should find it easily.
3. Add this key to the registry by following these instructions: Type "regedit" in the "Run" box on your Start Menu, then navigate to
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Explorer
Right click in the window, then highlight "new", then "DWORD Value". Name it MILExplorer, then right click MILExplorer (you just created it) and select "Modify". Enter a 1 in the "Value data" box.
4. NOW restart your computer.
5. Once rebooted, go to the Start Menu, click on "Run" and type the following in the box to start DWM:
rundll32 c:/windows/system32/uxdesk.dll,DwmStartComposition
6. That's it! Aero Glass! COOL!
NOTE: You will not be able to use IE/Explorer (You won't see your windows) unless you enable DWM by following step 5 AS SOON as you reboot. Trust me, don't try to open any windows 'cause you won't see 'em unless DWM is started. Don't worry though, you can still get to the Start Menu and the "Run" box.
EDIT: I forgot to mention that DWM MUST be reactivated every time you reboot because it doesn't start automatically. As I explain in the NOTE, you won't be able to use explorer/IE if you don't. An easy way around this is to create a batch file and place it in your "Startup" folder so it will always initiate upon startup.
I did not create this skin nor did I come up with this method. This is just what I have found by looking around on the 'net for hours trying to figure out how to get this cool effect. The skin is BOFH's and is an example of his great work! Thanks.