caster, Before you tried dragging the Taskbar upwards did you right click it first and unlock the Taskbar?
Windows XP Home. Just installed latest updates: KB890930, KB929338, Kb929399, KB905474.
After restarting, the Taskbar did not Auto-Hide. Checked Taskbar Properties and Auto-Hide was checked. So I unchecked it and clicked Apply then OK. Then I went back to Properties, checked Auto-Hide and clicked Apply then OK.
Now the Taskbar Auto-Hide is working but I had the Taskbar set to three lines high and now it's only one line high. I grabbed the top edge to pull it up but this doesn't work anymore. How can I get the Taskbar back to three lines? Should I uninstall the updates?