After trying about 14 distros, I've found that I like Ubuntu and Vector Linux a lot. As a matter of fact, I found Vector to be more competant in a few areas than ubuntu. For example (WPA2 Enterprise Wireless, and mounting partitions on boot).

I'm glad you like Vector - it has a lot to recommend it.....
2) I cannot figure out how to add shortcuts to the desktop. Its embarrassing to admit, but normally I just click and drag icons or create a launcher with its terminal command. It's probably just a matter of time until I figure this out but some feedback would be nice.
There may well be another (better?) way of doing this, but the simplest under Xfce is to create or copy an existing .desktop file to ~/Desktop. So, to get a shortcut to the Gimp on my desktop, I would fire up MC (mc from a command line), open ~/Desktop with one pane, then change to the other pane and navigate to /usr/share/applications. I would then scroll down until I find gimp.desktop, highlight it and press F5, which will copy the gimp.desktop file to my Desktop directory. Shortly after doing that, I would have a Gimp launcher on the desktop.
To do the same thing completely manaully, open a terminal and enter this:
cp /usr/share/applications/gimp.desktop ~/Desktop
If you are trying to add a program that doesn't exist in the normal Xfce menu, you will need to create your own .desktop file for it, once again located in ~/Desktop. You can one of the manu .desktop files you find in /usr/share/applications as a guide to what is needed.
One other thing, can someone provide me with a FAQ to terminal commands for VL, I'm familiar with Debian terminal so I'm not a complete n00b. If not, just the normal command on how to install an application from terminal and how to open a window (with the GUI) through terminal would be nice.
Terminal commands in VL are pretty much the same as terminal commands in Debian - its all bash. Package management is somewhat different. For command line package management, have a look at the man page for slapt-get.
I'm not quite sure what you mean by how to open a window (with the GUI) through a terminal? If you want to start a GUI application from a terminal window, simply entering the name of the executable will work, so long as it is in your users' search path. Adding '&' to the end of the command will alllow you to regain control of the terminal (by placing the GUI command in background).
I am using the newest version of Vector Gold 5.8 I think, XFCE desktop environment.
Dell XPS M1530 Laptop

I hope you don't really mean that. The most recent version of VL is 6.0 Standard. And its getting a bit long in the tooth itself. 5.8 was a pretty long time ago.....
To find out for sure, open a terminal window and enter this:
cat /etc/vector-version
That should return something like this:
Vector Linux 6.0 Standard Final Built on Feb016-09
Paul.