So far I have found the icons selector. I have changed them to icons but still have the same problem.
I select the folder icon and I get the file icons. With XP 3 you could highlight a file and shift it around to change the order. In this case the file highlights but there is no vertical bar like you have in XP. There is a ghost you can move around but as soon as you release it everything is back to where you started. I have tried right clicking and moving it, I even get a box that says 'move here', but still nothing happens.
I will have to stick it, rearrange with my old laptop and bring it back again.