Want to squeeze more icons onto your Window XP desktop? Right click your Window desktop, and choose property from the pop-up menu. Click the Appearance tab, and then click the Advanced button. From the item drop-down menu, choose icon Spacing (Horizontal). Reduce the amount of space beside icons by changing the value in the Size box from, for example, from 75 to 50.
You can also reduce the amount of space above and below icons by adjusting the icon Spacing (Vertical) setting.