> only the desktop allows moving icons around freely
I'm pretty sure Windows used to allow you to move icons around, I clearly remember making a mess on some Windows 98 folders. Maybe they removed that feature recently?
Windows stores/stored in the registry a limited number of file folders' icon layouts. Once you go over the limit, the oldest config is erased. I think the original limit was 200, but could be overridden using a registry key.
I'm pretty sure Windows used to allow you to move icons around, I clearly remember making a mess on some Windows 98 folders. Maybe they removed that feature recently?