Right click on desktop> appearance tab> effects> make sure the top box says "fade effect" and while your there make sure the 2nd box down says "cleartype" (better smoother text) that should sort it, if it doesnt go into themes tab and select windows xp, this will then overide any changes from default(default is just text with no background colour)

EDIT, just realise this still may not work, so ill give you something else to check/try....
1. Right click on My computer
2. Click properties
3. Go to advanced tab.
4. Under Perfomance click Settings
Under Visual Effect
Use Adjust for Best Appearance and Apply.

Hopefully ive sorted it in one of the 3 suggestions?