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Schuliebug,
If you are going to use an image to roll out your w2k machine, you could set this setting as part of the defaul user. This is what I have done. I also had the same prob looking for the setting. Spent ages looking for both "show small icons" and also "Auto Arrange" for the desktop.
Don't know if you could do this as part of a unattended setup ?
Duncan
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