Weird Icon Problem

[kvfelton]

A client of mine is having a weird problem with is desktop icons. He has a number of folders on his desktop, as folders, not shortcuts. He likes to keep these folders in the center of the screen, so they are easy to see. When he opens a folder and modifies a file. He saves the file and the folder that it is in jumps to the left side of the screen. When we checked the properties, the Auto Arrange is not checked, but the folder moves. This only happens to folders, files and shortcuts do not move.

We tried deleting the ShellIconCache file and rebooting, but now luck.

Has anyone seen this?

Thank you.