I popped the Ulysses disk in there and installed the program. There is a red "hard drive" looking icon that appears on my desktop (it says "soul men" on it).
When I take the disk out, the icon disappears and I can no longer even use Ulysses.
the red icon looking like a hard drive is the disk image Ulysses is on. Double click it and move the Ulysses icon in there to your Applications folder. You can then start Ulysses from your Applications folder and no longer need the disk image.