Windows 7: An issue about the Windows 7 selection rectangles

Been using 7 for almost a year, still I love XP much more than 7. One of the main reasons is the awkward behavior of the selection rectangles in windows explorer as described below.



They are too huge and there is no empty space between the selection rectangles of the icons. Let's say I cut an mp3 file from desktop and then want to paste it in 'D/Songs' where 'Songs' has many files in 'medium icons'. When I try to right click, I end up selecting some other song (because instead of the narrow white space, I've landed into one of these bloated selection rectangles). So instead of 'Paste', I get a wrong file selected with 'Properties/Rename/Compress' options.

Due to this behavior, drawing a selection rectangle for selecting multiple files is also challenging for me. I always end up with a larger/smaller selection rectangle.

Deselecting something in the middle of a densely grid of icons is equally frustrating.

Any way to resolve this? I've tried switching to other views but that doesn't help, those damn rectangles just get bigger! Please don't tell me to use 'Ctrl...' to cut/paste since I really hate using keyboard when a mouse click will do. Also I won't like to go to organize menu and then paste it from there.