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Originally Posted by KAROLOYDI
That's weird. Do you press Apply afterwards? Or do you just press OK?
Did you try Control Panel>System>Advanced>Performance and choose adjust for best appearence?
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Always wondered who spread that rumor.
There is one difference between OK and Apply: The first closes the window, the second one doesn't. That's it. Anyone who tells you different has either bought into the myth, or used an application written by a programmer that bought into the myth. Microsoft applications, including Windows, have absolutely no requirement to hit Apply first. No one I've challenged to prove me wrong has been able to do so, but of course they all have "this one time..." stories.
There are multiple causes for the OP's issue. The most common fix: right-click the Desktop, go to Arrange By, and clear the checkbox next to "Lock Web Items on Desktop". Another possibility is that you have some sort of web item that you can't see. Right-click the desktop and go to Properties. Go to the Desktop tab. Click Customize. Go to the Web tab. Make sure nothing here is checked. OK all the way out. You don't have to hit Apply first if you don't want to (I tested it). If the problem persists, check one of the items, OK out, then go back in, uncheck them, then go all the way out. If you're still having a problem, post back and I'll look up some of the less common reasons.
You cannot run active desktop items and have transparent backgrounds on your icons at the same time. I don't know what the reasoning is.