Also check free tools to get iconized Taskbar: Taskbar Iconizer and Taskbaric
Windows 7 taskbar doesn't show text in application buttons, it only show their icons. On the other hand previous Windows versions used to show icon as well as text in all application's taskbar buttons.
Actually Windows 7 new iconized taskbar feature looks good and it also saves space in taskbar area. If you want to have the same feature in Windows XP, Vista, Server 2003, 2008, etc, then you can get it after following a few simple and easy steps.
Before applying this tutorial:

After applying this tutorial:
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So here are the steps to follow:
1. Type regedit in RUN dialog box and press Enter. It'll open Registry Editor. Now go to following key:
HKEY_CURRENT_USER\Control Panel\Desktop\WindowMetrics
2. In right-side pane, create a new String value MinWidth and set its value to -255

3. That's it. Log off or restart your system and get ready to have iconized taskbar in your system.
4. To restore default taskbar behavior, delete the MinWidth String value and log off or restart your system.
PS: If you want a ready-made registry script which can do the task automatically, then download following ZIP file, extract it and then run the Install.reg file. It'll ask for confirmation, accept it:
This article was posted by VG in following section: Windows Vista, Windows XP.
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Vincent
Is it possible to make the Icon picture as big as it shows in Windows 7?
VG
^^ atm not possible.
Lawliet
Vishal,
If we make a Quick Launch's Icon be Large, Right Click Quick Launch- View - Large Icons
I have a problem
How to make a Taskbar button large like same to Quck Launch ?
VG
^^ Its defined by the theme. So one will need to edit the theme and change the button margins to increase their size.
Paul Kevin
This trick was so great! It made my desktop look like a real Windows 7 OS. Good thing you know about this because i am really finding a neat trick on how to make my taskbar icons as sleek as in those of Windows 7. This is really helpful. Now, I do not need to run some sort of program just to make my taskbar look like the Windows 7's. Thanks VG. Hope that you will help more people in their struggle to get their Computers optimized.
Paul Kevin
This site is so cool. I even recommend this site to my friends who are struggling to get their desktops identical to Windows Vista and Windows Seven. Hope you continue to amaze more and more people through the neat tricks you've got on your sleeves to make computing a lot easier.
You really rock! Keep up the good work, VG!
SDreamer
I just noticed, when I dock the task bar on the the sides this doesn't seem to work anymore. Any fix for that?
Kshitij Parajuli
It will work. Try reducing the width of the taskbar.
Dylan
Did not work for me =/
Peter
VG - Interesting - but can I just remove the prog title from the button to have
icon, Workbook_name in excel etc rather than Icon, Microsoft Excel - Workbook_name.
The Icon already identifies the application so the "Microsoft Excel -" is redundant.