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The desktop presenter will allow you to stream your desktop via Ustream Producer, as well as, allow you to broadcast the screen of a different PC.
First thing you will want to do is download an app called Bonjour for Windows. This is a free app and will make setting up and configuring desktop presenter a lot easier. http://www.apple.com/macosx/features/bonjour/
For the alternate (non-bonjour method) for getting Desktop Presenter to work, you can do the follow:
Select "Media" and then click on "New Desktop Presenter". A window will pop up asking for the URL for the Desktop presenter. Put "127.0.0.1" into the box and select OK.
Keep in mind if you are using Ustream Producer you will only be able to capture the screen of one PC. If you would like to capture more than one you will need to upgrade your account to Ustream Producer Pro or Producer Studio Platform.
1) Launch the Desktop Presenter by clicking the Computer Icon found above the Shot windows on the left hand side of the screen and then clicking on "Launch Desktop Presenter on this computer".
2) Next, set Sources and Settings in the Desktop Presenter parameters windows. Select "Preferences" from the Producer File menu at the top, then "click Performance". Set the frame rate and image quality to your liking.
3) If you are transmitting windows that present Direct3D graphics then you can check the box next to "3D Compatibility"
Once you have configured this correctly you will see the source preview in the Ustream broadcast window.
4) Click "Go" and then "Start Broadcasting". If you wish to record your broadcast click "Start Recording"
How to know if you are live or live and recording. You can look at the top of the Producer Platform.