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Hi where would the desktop images be found when creating a droplet?
Unfortunately we are no longer offering desktop images. You can however install a desktop environment manually on a (1GB+) droplet. I would recommend using XFCE as it's relatively lightweight and works well:
sudo apt-get install xfce4
Could you pl. tell, how to start the xfce4 desktop after the install.
See How To Setup VNC For Ubuntu 12.