That's not only live ISO testing. I've been having this very problem on
my (1024x600) netbook since Oneiric (or was it Natty ?) and it's still
there in Precise Beta :

- Right after login, I always have the 3 topmost icons on my desktop OK,
while the lower-end icons are all "piled" on top of each other.

- I usually right-click the desktop then "sort icons by name", that
fixes the issue... until newt login where the mess is back.

So that's definitelly not a live-CD issue, but a more general Ubuntu
desktop issue.

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to nautilus in Ubuntu.
https://bugs.launchpad.net/bugs/838714

Title:
  ISO testing: "Examples" folder and "Install Ubuntu 11.10" icons
  overlap each other on the desktop

Status in “nautilus” package in Ubuntu:
  Confirmed
Status in “nautilus” source package in Oneiric:
  Won't Fix

Bug description:
  ISO testing: http://cdimage.ubuntu.com/daily-live/20110901/oneiric-
  desktop-amd64.iso

  Testcase: Install (entire disk)
  http://testcases.qa.ubuntu.com/Install/DesktopWhole

  After booting to the desktop, the "Examples" folder icon and "Install
  Ubuntu 11.10" icon on the desktop are layered on-top of each other,
  which is messy and possibly confusing.  Attached is a screen shot of
  the bug.

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/nautilus/+bug/838714/+subscriptions

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