File "~" is the result of a bug in MS cumulative patch for outlook express --# 330994, made available in April 2003. It is not spyware or a virus. It is simply a back-up of your address book, that shouldnt have turned up on your desk-top. It is called a "tilde file" and is placed on the desk-top because it was renamed & most people access outlook from desk-top. You can safely delete it. If it is other places in your system ---leave it alone , as it is a back-up, even if not important.
I believe MS has addressed this problem already, or will shortly, with a update >>>Jimmy