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When the location is typed in and entered, the entire application reflects those changes -- still with a moving wallpaper. In this case, the moon rotates and the light spins around it. This is just an example of what a Metro user-interface application looks like and feels like to work on.
But not everything has changed... just a great deal. Even in Windows Explorer, the view now sports a Ribbon to enable better touch-screen accessibility as well as allowing more space for menu options. Not sure if it is just me, but Explorer is starting to look a little cluttered.
Depending on what you click on, you will receive different options in the menus. Applications will get a special tab that opens up dedicated to them, just as you would get a 'picture' in an Office document tab.