The Good Stuff!
You can drag native applications into this list, and they will be installed on the phone. For them to become functional, however, you need to have iFuntastic Support installed. Applications that have not been 'activated' will simply make the phone hang for a while - no harm done. Within each application (applications are actually a special kind of folder) are the files that determine its appearance and functionality. Some of these files are common to all applications: Default.png is the image you see when the application starts up. icon.png is the application's icon. However, if you customize your Home Screen with iFuntastic, the icon will actually be _org_icon.png - icon.png will be modified with a section of the background image. If you see iFun01.app .. iFun??.app - these are the placeholders that iFuntastic uses to provide the advanced Home Screen functionality. Read more about that in the Home Screen Editor documentation.