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It's because you set task list minimun width to a higher level.
Try right clicking on the taskbar to select Properties and adjust the minimun width to a lower number. On default it should have been 300.
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Ah, so this brings up another aesthetically displeasing trait: Now my panel changes size depending on how many tasks are in my taskbar because I have it set to normal width, rather than full width. Is there any way to force the whole panel to stay at one length?
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Not that I know of (apart from Full Width).
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