Just to test I really wasn't going mad I restored my computer from a previous system image I made the other day (trying out the new Windows 7 function). I remembered that this box thing wasn't happening when I made the backup.
Sure enough, in the restored version I'm running now, it's no longer happening on the desktop. I can click on the desktop and no
outline appears around any icon.
Something is definitely going on. I will stay vigilant and try to notice what happens before it turns on again (if it ever does) and post any solution I find here. (Hakon - don't lose hope!
(if anyone else figures it out in the mean-time, please let us know!)
EDIT: just to be clear copernicus - I'd click on a desktop icon, it would highlight (translucent box effect around the icon) and then I would click on the desktop and the dotted line would remain where the highlight once was, around the icon.
Now, ater the restore, I click on the icon and it is highlighted. I click onto the desktop and the highlight disappears (as before) but NO dotted line remains arounf the previously selected icon.
If it's 'always been there' how do you explain the difference? Hmmm?