Currently Being ModeratedJul 28, 2012 7:51 PM (in response to ilifefail)
I found a solution. I think it was caused by a problem in the carry over of the previous settings/changes in the previous OS during the upgrade. If you change the size and grid spacing of icons before and try to drag some items on the desktop after the upgrade it wouldn't follow the older settings rather it will follow the new one.
I just dragged everything to the new grid alignment and then readjust my settings such as icon size and grid spacing. It's now back to normal.