If you have another user profile switch to it and see if the same problem exists.
You can try running System File Checker to see if it'll fix this problem.
Or use System Restore back to when it worked but the Video Driver will be removed.
Another thing you can try is use TweakUI which has a utility to rebuild Icons but not sure if it'll fix this problem.
Okay, I got a "NVIDIA GeForce2 MX/MX 400" video/graphics card. I restart my computer after I update to the most recent drivers for Windows XP. After boot up most of the images of the icons on my desktop and throughout the rest of my hard drive disappear. Though all my programs still work, this problem still is very irritating. So if anyone has any ideas of how to fix this or if there's any more information I need to give...please let me know I'd greatly appreciate it, thanks