Here's our Windows XP Tip for.. February 11, 2004
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Changing the Icon Spacing
When you arrange your desktop icons, the distances between them are determined by settings in Desktop Properties. If you feel that Windows places your icons too close together when you choose Line Up Icons, you can change the setting.

Right-click on the Desktop and choose Properties. Click the Appearance tab. Click the Advanced button. Under Item, choose Icon Spacing (Horizontal) or Icon Spacing (Vertical), and then increase or decrease the number under Size. When you're finished, click OK.