In 98 right click the desktop and choose properties on the appearance tab
click the drop down arrow under item and scroll down the list you should
find three icon metrics.
Icon usually set to 32, Icon spacing horizontal and vertical which are both
usually set to 43.
Other settings will also cause problems for instance if the taskbar, menu
and font size etc. is set to small or large for the icon to be displayed
properly. Windows will stretch or shrink and icon to fit the metric
involved which usually distorts the icon in some manner.
The best way I've found to fix it is set the appearance Theme to Windows
Classic Desktop and note down all the metrics involved then make sure any
Theme you apply uses the same metrics.
In XP one needs to click the Advanced button on the appearance tab to change
these settings using the using the drop down menu under item.
Many third party Themes will really mess up these settings as the desktop
may look ok at a certain resolution but not at others.
Bernie