The Windows 3.0 splash screen. Now in VGA!

The Windows 3.0 desktop.

It is at this time that Microsoft finally realized that the GUI was catching on. The windowing hasn't changed much from Windows 2.x, but it has been given a facelift. Buttons and window controls now have a 3D-like appearance to them. This did not extend to other OS functionality however.
The other thing Microsoft did was replace the old MS-DOS Executive with the Program Manager, as well as it's companion the File Manager. The Program Manager uses things called Groups, and uses large-sized icons like the Macintosh did. These icons are drag and droppable to other program groups, but you cannot embed groups inside of each other.

Windows 3.0 is the last version to run on old 8086 and 8088 based XT machines. Windows 3.1 and later required a 286, and as of Windows 95 that requirement was upped to a 386.

Of course, if you really wanted to, you could still use the old MS-DOS Executive.

This is the File Manager, which allows you to easily browse files and also drag and drop them between drives and other folders.