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In Windows 7 if I have files arranged by date on the desktop with newest being last, then files are automatically places at the end (i.e. right bottom) as I update them.

The exception seems to be textfiles. Textfiles while updates never change their position on the desktop.

Why is this?

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No one knows what makes Windows 7 tick when it comes to file arrange, either on the desktop or in explorer, and there seems no way to change the behavior. – Moab Feb 20 '11 at 13:15
Make sure the date you're seeing and sorting by is the date modified, not the date created or last accessed. – martineau Feb 20 '11 at 16:49
I don't have that option when arranging desktop icons. – Jay White Feb 20 '11 at 22:10

Right click on empty space in any folder, you see the "sort by", instead of clicking in "Date", click on "More..." . Then, is ordered by alphabet order all the options available. scroll to modification date or date modified. (can't remember) . Check that. Then rmb again and select "date modified" for sorting icons. Then go to top menu, Tools, Options, View, hit "Apply to all folders" button. I usually make this in top My Computer or Unit C folder, so I think it applies to all hardrive. The new option should always appear now in right click menu...

Edit: When ordered by date modified, might be happening to you, if disk is very full and fragmented and there are way too many files in that folder, it takes a second to actually auto update the folder and put the newest file at the very beguining. In my win 7 machine is like one second in the very worst case.

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