Thanks all for pointing me in the right direction here we go.
1. Make sure your logged in as an admin.
2. open up task manger and close down sidebar if its running. (just kill the process)
3. open up c:/program files/windows sidebar
4. right click the sidebar application go to security, check the status of the settings, my load had sys, admin and users with read as the only permission. If this is the case keep on with the next step.
5. Go to the advance tab and go to owner and take ownership of the file with your admin account. then ok out of the boxes, so this setting can take effect.
6. right click/properties/security tab.
7. now select system and hit edit, change it to full control, I also put admin with full control and gave users modify.
8. now click ok to run out of it.
9. double click sidebar. Be prepared, I had 34 different gadgets jump onto my desktop after I did this.
This fixed my inability to maintain gadgets on the desktop after rebooting, it also allows me to edit the gadget settings, and I no longer have a ghost icon from the My gadgets window if I drag and drop a gadget to the desktop. I also let trustedinstaller account have full control, I didn't see any reason to mess with it. UAC is disabled by the way. and I haven't installed any "fixes" from vista. If this help anyone out, let me know.
Ya know windows 7 is like the last Highlander Movie, one was awesome (XP), Two was what the hell were they thinking (vista), and three (win 7) was back to the original story line or an apology for messing things up with two (vista).