Change Start Menu to Use Small Icons in Windows 7 or Vista
Windows Vista uses large icons by default in the start menu, and it hides the setting for small icons pretty well. No matter, we’ve located it. (Thankfully Windows 7 is a bit easier)
Changing in Windows 7
Simply right-click on the start menu orb button, choose Properties, then check the box for Use Small Icons on the Taskbar tab:

Changing in Windows Vista
Right click on the start button, and select Properties:
Then click the Customize button:

Now scroll down all the way to the bottom. You should see a checkbox for Use large icons, which you’ll want to uncheck:

Ahh, much better, especially if you pin your favorites to the start menu:
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Thanks for the friendly and fast help in fixing my desktop view.
Many, many thanks! I just changed my icons to small ones. You are great!