2 line+ Windows 7 desktop icons skipping space and not saving to NEXT AVAILABLE space (reboot, install)

[AllTheGoodNames.AreTaken]

If I have an icon on my desktop than has a filename that takes 2 or more lines, if I save another file to the desktop it will skip an icon space/block and essentially double space the icons wasting tonnes of desktop space. I've been playing with the icon size and vertical spacing setting for 2 days now. The only way to fix this is to shorten the file name down to 1 line. This started after a fresh install of windows 7. It used to be that a long file name would cover up and only show after clicking it to cover up the next icon. It seems here that the even though the long file name is hidden the next saved icon is still seeing the longer text taking up the icon block and skipping to the next available space. How can I get it so saving a new file dos not skip an icon block?


As per the picture if I were to save a file, since the 2 bottom files have 2 line names and AVG at the top is 2 lines the next file will save to the red box but if I renamed AVG to JUST AVG so it only takes up 1 line then it would save to the green box. How can I get the next save to always use the next available space, which in this case should be under NEW DRIVE UPGRADE where the yellow box is?? Again if I were to change the name to just NEW DRIVE the the next file would save to the yellow box where it's supposed to because its under a file that's only a 1 line name.



EDIT: However it should be noted that after the icons save to the wrong spot, I can drag and drop them to where I want including under a 2 line file name and they will stay there even after reboot. The problem only exists while *saving* new files.

[AllTheGoodNames.AreTaken]

Still looking for solution. Windows icon verticle and horizontal spacing setting does not do anything