Laptop desktop icon spacing...

So i have a XPS gen 2 and im trying to get the desktop icon spacing right. at first they were kinda large when i got the laptop and i realized the dpi in the video setting was set to Large size (120dpi) instead of normal size (96) dpi. So i changed it and it fixed it for awhile but now i havent changed anything yet the spacing between the icons is now greater. I believe the icons are still the same size just for some reason the space inbetween them is greater now and i cant find any setting to resolve this. surely this must be something simple, i just cant figure it out.

Heres a link to the image. its 1920x1200 resolution
http://img164.imageshack.us/img164/8135/untitledqd1.jpg

thanks a lot

assuming you have xp, right click on your desktop, choose properties. next choose the appearance tab. click advanced. click on the box that says desktop. the 8th and 9th thing in the list is your icon spacing vertical and horizontal.

I managed to move them closer to eachother not by way of the advanced menu but by dragging them closer to eachother. it was like their was a empty space between each icon it just didnt look like it cause they were already so close. because of that i was able to get them closer however now there like on top of eachother. I tried adjusting the vertical and horizontal icon placement in the advanced menu but no matter what i put it at the icons didnt budge. i dont get it.