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 in Windows Vista, Windows XP.
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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.
Karthikan
Okay, essentially, running taskbaric_xp removes the cropped text in thin taskbars and/or certain themes with Windows XP.
So, here is the sure way fix without having to "run" the program every time as it resets on log off/shut down.
1. Download taskbaric_xp
2. Apply the MinWidth registry edit and set the value to -255
3. Click on Start-> All Programs-> Right-click and open on Startup
4. Cut/copy and paste taskbaric_xp program into Startup (this tells Windows to run this program everytime it starts); then log off
5. Voila! Now you have a rectangular, centered, iconised taskbar in Windows XP
*Feel free to rename the taskbaric_xp program in the Startup folder to whatever you may like. In fact, you can even hide the file within the Startup folder (right-cick on Properties and check Hidden)!*
Karthikan
Update: *by hiding the exe file in XP, it prevents the program from running*
Blesswin Samuel
I liked this taskbar hack very much! But I want to increase the size of the icons
VG
^^ You can use ViGlance for big icons:
http://www.askvg.com/viglance-1-0-build-1194-released-now-supports-pin-and-move-items-in-taskbar/
iWolf
Oh hey vishal. I just decided to actually want to use my Quick Launch bar but the icons in them are small. How do i enlarge them? thanks. Just the icons
Yaz
Thank alot for that! You are the greatest VG you solved my crisis.....