Changing in Windows 7

Simply right-click on the start menu orb button, choose Properties, then check the box for Use Small Icons on the Taskbar tab:

Changing in Windows Vista

Right click on the start button, and select Properties:

Then click the Customize button:

Now scroll down all the way to the bottom. You should see a checkbox for Use large icons, which you’ll want to uncheck:

Ahh, much better, especially if you pin your favorites to the start menu: