Windows has no option to change the large desktop icons to small ones like the option that is available for folder icons. I was searching for a software called SetShellView which a friend recommended and I found out that this software was only working in Windows 2000. It allowed the user to change the large desktop icons to small icons and even to list views.
Deskview was a program mentioned in the article that I found that would at least bring part of the functionality to Windows XP and Windows Vista. A click on the executable, only 11 Kilobyte by the way, changes the large icons to small icons. This remains this way until you either boot your computer or Windows Explorer crashes.
A good way to use it permanently would be to add the software to your startup folder so that it will be executed with every system start. The behavior in Windows Vista is a little bit different though. Instead of reducing the large icons to small icons it just reduces the space between icons. Take a look at the two screenshots below for a better explanation.


The left image is showing the XP desktop before and after applying deskview and the left image is showing the same for Windows Vista.
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[...] Windows has no option to change the large desktop icons to small ones like the option that is available for folder icons. I was searching for a software called SetShellView which a friend recommended and I found out that this software was only working in Windows 2000. It allowed the user to change the large desktop icons to small icons and even to list views. [...]

Hide all icons on your desktop
Huh????
Right-click desktop. Click Properties–>Appearance tab–>Advanced button.
In Item section, click drop down arrow, click Icon entry. Set icon size as small (or large) as you want there.
I run an icon size of 25 at 1600×1200 resolution. This gives 16 desktop icons with text vertically, which I find to be a good size.
Every now and then I learn something, thanks JoJo, your method works perfectly.
Jojo’s method also changes the size in other locations. Like in the autorun menu that pops up when you use a usb flash drive. And everywhere else you have the option to view as icons, Windows Explorer and the Control Panel.
Thanks Jojo
The easy way is very simple- click on your desktop and hold the control key and use the wheel on your mouse to make them any size you want. This works on Windows-XP and Vista. Should you like to find hundreds of Tips and Tricks-Log on to http://www.howtogeek.com. There are hundreds of varibles to change and/or alter windows, firefox, vista and just about anything to modify your computer.
I’ll say duh to JoJo’s hack. If you want small icons with a footprint of big icons, no problemo. Some people like a cluttered desktop.
D-Color does this and so much more.
D-Color XP
Windows 7 RC desktop appearance kan be changed the good old way as well, it’s just very hidden :-)
Control Panel – Appearance and Personalization -
Personalization – Windows Color and Appearance – Advanced
appearance settings – Icon * from the drop down and change away
Thx to JM BAKE for making it presentation on the fly friendly for me.
/BoSS
in windows 7 right click anywhere on the desktop -> view ->small icons
TuneUp Utilities allows to change the size of the desktop icons and their vertical and horizontal interval.
I know that this software is shareware but you may easily find free old versions (2007 and 2008) of it if you search a little bit… ;-)