I've been asked this numerous times on MSN Messenger, so I'd thought I'd post it here.

If you are finding that your desktop has huge or too small icons and text then follow these simple steps.

Right-click anywhere on the desktop (in an empty space).
Select Properties
Select the Settings tab
Look for the slider control labeled Screen Resolution.

Now, if you want smaller icons and text adjust this to a higher level - if its on 800x600 go upto 1024x768, click Apply then OK. Obviously, if everything on your screen is too small adjust it the opposite way.