Icon Spacing

I have a new netbook with WinXP and a 10.1" screen with 1024 x 600
resolution.
When I try to position the desktop icons, I can't move them freely around
the desktop.
They'll kind of "snap to" when they get close to another icon. I've gone
into
Properties/Appearance/Advanced and changed the Vertical Icon Spacing and
Horizontal Icon Spacing to larger and smaller numbers (currently 36), but it
still
doesn't allow me to move them precisely where I want them. What's the
procedure
to fine tune their position?

Thanks!
Scott