Odd Desktop Issue

I'm having a problem with the icons on my desktop. They have a "shadow" of sorts, a little blue outline. I'm not sure how this happened..and these are the actions I've tried to fix it. I use 1024x768 screen resolution

I have
rearranged the icons (autoarrange), fixes it until you click on an icon or move an icon
restart (no avail)
shut down (no avail)
play a game that runs in 800x600 (fixes it for a second, then it comes back)

Someone told me this might be a transparency problem, but i don't have any idea what that means...

I have a picture of the problem at this message board...
http://www.bbfree.com/noobforums/index.php?showtopic=145&st=0&#entry1907

The problem is the blue border around the file folder, much more easily seen on the bottom one.

A little help here would be great. I've tried a lot, the next thing would be to change the resolution back and forth. Its not serious, but just really, really annoying. Thanks

Maegtelluma

 

The problem is that the icons aren't transparent, to make them transparent do everything on this page:

http://www.annoyances.org/exec/show/article02-137

 

Strangely enough, everything on the list they say to check is done by default. Any other ideas?

 

In that article they have a program called micro something, try using that to turn them transparent.