I've been using small icons since I first bought Windows 7, just switched the other day. I had decided to get rid of a bunch of desktop Icons and use primarily my taskbar for access so I made taskbar icons larger size. I'm liking it so far, with my larger monitor it isn't taking up too much screen or anything. In certain situations I still make them small for a bit, sometimes even hide taskbar. (I hate the little black line hiding it leaves behind :[ If I hide, hide!)
Anyways, the workaround listed above does not work for me. The steps are for Windows 7 prof/ulti. Home edition doesn't even give you a Local Group Policy Editor

And the regedit fix also doesn't work. I logged off, then tried restarting, then confirmed that it was correct. Now I guess I'll try the download regedit auto add.. Doubt it will work but maybe the step-by-step instructions were off or something.
Other than that, you have the disable Aero fix and I'd rather not get rid of everything.
Edit: Rather than let some baddies edit my regedit I just checked it in text edit - & it is the same as instructions. So yeah.. Anyone else have any ideas?
edit2: I'm just going to try all the suggestions listed in that pages comments sections. Looks like there is quite a few, something is bound to work.
"This ability was apparently disabled in the final versions of Window 7 (at least 64-bit, I can't speak for 32-bit versions). More here:
http://social.technet.microsoft.com/Forums/en/w7i…
From above link: "TaskbarNoThumbnail: This policy applies to Windows Vista only (and I think pre-release versions of Windows 7 too). Microsoft removed the policy in the final version of Windows 7. In Windows Vista there was a checkbox in the
taskbar properties window to enable/disable
taskbar thumbnails. This portion of the UI was also removed in Windows 7.""
http://rammichael.com/7-taskbar-tweaker
Going to try that.