There's a registry key still left in there for WindowsBlinds apparently interferring with the normal desktop. A good free RegCleaner opens upto a main window where you can see any and installed programs for a manual removal of anything seen there for this. It also has an automatic registry cleanup tool.
http://www.majorgeeks.com/RegCleaner_d460.html
With the Vista tranformation pack it was also a big help for manually removing leftovers found. CCleaner will look for lingering folders as well.
http://www.ccleaner.com/ The following here is based on an MS article regarding how WindowsBlinds increased the icon size and disabled the auto arrange feature included in Windows.
Icon Spacing Not Updated Using Large Icons in Microsoft Plus!
View products that this article applies to.
function loadTOCNode(){}Article ID:136644Last Review:January 19, 2007Revision:1.2
This article was previously published under Q136644
SYMPTOMS
loadTOCNode(1, 'symptoms');When you select large icons on the Plus! tab in Display properties, the spacing of the icons on the desktop may not change, causing the icons to overlap.
Back to the top
CAUSE
loadTOCNode(1, 'cause');The icons are not automatically rearranged unless the Auto Arrange option is selected for the desktop.
Back to the top
RESOLUTION
loadTOCNode(1, 'resolution');To arrange the icons automatically, use the right
mouse button to click an empty area on the desktop, point to Arrange Icons on the menu that appears, and then click Auto Arrange.
Back to the top
The problem has been seen in Windows since 95 with the auto arrange options. If the right click selection fails to see results run the system file checker following the registry cleaning to see if any system files were effected with a cross link. Just type in "sfc /scannow" at the Run prompt with the XP installation disk in the drive.
