I am having this problem too. I have had it before and fixed it but don't remember 
how. The drop shadow option is checked, the lock web objects option is unchecked. 
The  "My Current Home Page" item is unchecked. I tried the registry hack. I am on 
XP Home so I don't have gpedit.msc. My icons still have the colored recangle instead 
of being transparent.

This problem started for me yesterday. I was trying out some different wallpapers, 
when I set a local HTML file as the background. Then the icons lost transparency 
because Active Desktop was activated. I then changed it back to an image. The icons 
did not become transparent again.

I know my current wallpaper is a .jpg file (http://kjun.org/hue_1500.jpg, 
beautiful work of art), but I think somehow Active Desktop did not turn off when 
I switched back to the .jpg.

I have noticed that whenever I shut down or restart, that the screen changes to the 
default windows xp screen as normal, then for a split second the entire screen becomes 
the desktop default color, then goes back to the xp screen. At first, it was showing 
the file "Firefox Wallpaper.bmp" but I deleted it so it now shows the desktop color.

Does anyone have any ideas?







On Thursday, January 5, 2006 at 2:19 pm, Thommy Webster wrote:

>Hi all,

>

>I'm having the same issue with the desktop icon shadows. Unfortunately, I've tried 
all the suggestions listed in this forum, from changing registry entry values to 
changing the display properties, yet I still have the shadows. I also checked my 
system with the HSRemove tool successfully, but it also didn't help. Something else 
that I found odd was that in my 'My Pictures" folder I no longer have the 'Set As 
Desktop Background' option when I right-click any image. 

>

>Any suggestions?

>

>Thanx,

>Thommy

>

>
 

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