Set a Console as your Windows 7 Desktop

I used the Console project hosted on SourceForge by Marko Bozikovic to embed a Powershell terminal on my Windows 7 Desktop.

Simply remove all the borders, menus, tabs, etc using the settings menu and set a good starting x/y location. Then, you can modify transparency settings to your liking, or just set your desktop and console backgrounds to the same color.