Move the mouse pointer to the top of the task bar until it changes. Left-click and holding the left-click, move the mouse pointer down.

Any better?

As Mike said.

Here are some visuals to help you out

http://www.timeatlas.com/mos/5_Minute_Tips/General/How_to_Resize_or_Move_Windows_Taskbar/

HTH

Also, try Taskbar Repair Tool Plus! (http://www.kellys-korner-xp.com/taskbarplus!.htm)

you'll need to unlock the taskbar in order to reduce it ( drag it up or down.)
for the fonts also look at the start menue options,
 r/lcik the taskbar properties start menue customise small icons

just download this tool

http://www.kellys-korner-xp.com/taskbarplus!.htm

and fix your taskbar

Cheers

I tried that taskbar fixer, and it didn't seem to change anything, even after logging out and logging in again, as it instructed.

I don't need to "resize" my taskbar exactly, it's not 2 rows high or anything, just a bit magnified.  And I couldn't find anything in accessibility options to change it... I'll attach a picture - on top is my screwed up big taskbar, on bottom is a normal one how it should look.
sample.jpg

try this

turn off the quick launch and see

and then turn on the quick launch if it appears ok

if the above solution is not working then try this

Follow the procedure given below.

1. Open Start >> Run and type regedit

2. Navigate to the following path:
HKEY_CURRENT_USER \ Software \ Microsoft \ Windows \ CurrentVersion \ Policies \ Explorer

3. Locate a registry key named NoSaveSettings of type REG_DWORD with a value of 0×00000000 (1) and set the value=0 (if you find it skip the 4th step) .

4. if you dont find a registry key with this name you will need to create it.

4.1 Right click and select new >> dword value.

4.2 name it as NoSaveSettings (without double quotes) and set the value=0

5. Exit registry and restart windows.

Try dragging it to the left, top, right and then back down. Lock and unlock in all 3 other places.  See if the issues persists around the screen.

No luck.  Tried all those things - still looks the same!  Very weird.

What size is his desktop display set to? making it smaller overall may help
set the screen display to 1280x1024
Another area to look
r/click the desktop properties appearance>Effects> is use large icons ticked?
r/click the desktop properties>Appearance>Advanced> Items select an item ( Icon) and the colour and font size options appear on the right.

If your asked to reboot this is  preferred over just logging off some settings associated with windows may not fully stop to refresh with just a log off and log on.

here is the solution

right click on the task bar

and choose lock the toolbar ( untick now )

now press right click and choose view -> choose small icons

and now lock the toolbar

hope it helps

Hmm, well, there is only one available resolution, 1280x1024, so that's what it's on :)  Large icons is not ticked, all the settings in Advanced look right to me.  The titlebars are at 25, the scrollbars and fonts are at 18.

Oddly, if I select the Windows XP default theme, it wants to make everything huge!  See attached image.  Why would it want to default to that?
displayproperties.png

YES!  DPI is a setting I did not know about - and it was right! :)  Thanks.

Also thanks for your help Merete and other! :)

Hmm I bet it's the quicklaunch,  adding to itkamaraj suggestion,
try this, I just tested it and this works!!!
unlock the taskbar  
now drag the spacer from quick launch  to the right so you get a space on the quick launch side then rightclick this space and then view
use small icons, but do this on the quicklaunch side only.
Then drag the spacer bar back and lock the taskbar

Taskbar-quicklaunch.jpg

great finally resolved.
Good Call itkamaraj