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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https://bugs.launchpad.net/bugs/838714

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

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