Certainly worth a try Boggin, this has been driving me mad.
Quick question though, under the 'notes' section "Rebuilding the icon cache will not help with the following icon issues:" the last item reads - "Thumbnails of folders, pictures, videos, and documents."
Considering my problem seems to involve the 'thumbnails' etc of items inside a desktop folder, is it likely to fail?
I know the simple answer is - try it and see, but, is this a possibility?
Many thanks for taking the time to help.