There's a wild virus floating around with this exact payload (moving icons around on your screen so you can't click on them). Scan your hard drive with a virus checker. If you don't have one, go to
PC-Cillin and click on Free Scan (third option on very top). That should clear up your machine.
-The Hajman-
I took your advice; it found a virus widespread among directories and reports "uncleanable."
So far, nothing else seems to be affected but sneaking up on a desktop shortcut is like catching flies on a flying Frisbee.