The problem:- My desktop icons all had transparent text under them, all of a sudden, they have that nasty grey box around them now, can someone tell me how to fix this.
Resolution:- Control Panel>System>Advanced tab, click on performance settings. On the Visual Effects tab, enable the line to "use drop shadows for icon labels on the desktop".
Also make sure that there is no web content on the desktop, if it's present then transparency won't work.
Check it under Display Properties > Desktop tab > Customize Desktop button > Web tab >make sure 'My Current Home Page' box is unchecked.