In my system also I've got the same problem. But now I managed to resolve it. Just 
following the steps below:

Step1: Right click My Computer and choose Properties. Go to Advanced Tab and click 
on Settings button under Performance frame and deselect the Use drop shadows for 
icon labels on the desktop checkbox and then click OK two times.
Step 2: Start -> Run -> gpedit.msc
Step 3: Go to User Configuration -> Administrative Templates -> Windows Components 
-> Windows Explorer. Double click on Turn on Classic Shell and select Enabled option. 
Click Apply and OK. Close the Policy Editor.
Step 4: Follow the Step 1 but select the checkbox and click OK.
Step 5: Now go to Desktop to enjoy the Drop-Shadow effect.






On Monday, May 31, 2004 at 5:52 pm, Patrick wrote:

>Can it even be done? None of the 3rd party applications have been able to do it 
- 

>I'm reduced to setting my desktop colour to the same as a corner of my wallpaper 

>that my icons are hiding in  

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