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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Rowan
Hi VG,
In my Registry editor, i don't have a minwidth ionly have a menuwidth
autumn
I did the automatic one (the download) and it didn't do anything. It asked for confirmation, and it still looks exactly the same.. what do I do?
ryan
hi. it gets rid of the text but the icon stays tiny in the right hand side in the ceneter.
Michael
Help. With this taskbar, the logo on my icons is too far to the right. What should i do?
Sam
What is the regular minwidth?
bhasker
You are really grea man i eas downloading your stuff from the last two years.Vistal Guptha Vista-L Guptha.Later VG in all the forums.Thanks friend your work is awesome.
THANKYOUBOY^_^
WOW NAMANG HA AKO WHAHAHAAHA THANKS TOL ^^
Dann
I have the same question as SDreamer: Is there a way to make this work while the taskbar is docked on the sides?
I love the hack, so thanks a ton!
VG
^^ Its a theme problem. If you use SevenVG theme, it'll not have this problem.
Rahul
Hi... Friend
Rahul here.,
Can any body help to me of Customize Windows. I am Trying to Customize Xp sp3 CD
But I am not success too.
Help to me to Pacing third party software in Installer XP CD with Windows 7 Look
Given to some tip or Software name to do own Project.
Help to me
Thank you
Rahul