You may have heard about the improvements that Microsoft has made to the taskbar in the Windows 7 operating system. The company has improved it quite a bit which in turn changes the functionality of it significantly as well.
One of the changes is that Windows 7 displays icons in the taskbar instead of folder names which looks similar to how items were displayed in the operating system's quick launch bar.
The advantage of this interface change is that it is possible to squeeze additional icons on the taskbar, making room for some of the new features that are introduced in the operating system.
The new feature may take some getting used to time though as you do not see names of folders or programs automatically anymore on the taskbar. While you get the name when you hover the mouse over it, it is faster to learn to associate the icons with the programs.
Windows 7 Taskbar Iconizer is a implementation of that feature for Windows XP. It basically changes the way the folders and programs are displayed in the Windows Taskbar from their default view to a view where only icons are displayed. The program does that only on vertical taskbars. If you have customized the position of the Windows Taskbar to be on the left or right side of the desktop then you will not see a difference.
As you can see on the screenshot above, it provides more room for icons on the taskbar, which may be especially useful on systems where lots of programs are open at all times.
The only real gain is that additional folders and programs fit into the taskbar. Items are automatically grouped which adds even more space to it, but may be something that Windows XP users may need to get used to first.
The software program is portable and a restart is required after making the changes. The same program has to be used to revert the changes again.
Update: We have replaced the original link pointing to Deviant Art as the page is no longer available on the site. It is now pointing to our friend's site Tweaking with Vishal.