Hi,
It is good to see that you were able to find your answer for yourself, not too many people even try. If you were able to do this before you posted, you would not have needed to post. But you would not have been able to share the situation about Windows 7's disabling of "Arrange Icons".
Therefore, all in all a good job and thanks for sharing your findings, as I am sure many will read your post and it will answer the questions of many of them.
Now that you have done such a good job, you can mark your thread as "Solved".
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Posting Virtuoso
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since Apr 2008