I think I used something like IconRestorer when that happened to me. Not sure the one I found thru google is the same one I used but it added a right click menu item to the recycle bin to save and restore icon positions. Worked fine Cheers
sombahd, I run the same resolution on one of my boxes and it looks fine. Maybe try uninstalling... set everything to default then re apply? Squeeto- I had the same prob... try the skydrive mirror if you have a prob again.