I would like to decrease the width of pinned icons. I already have the small icons set, but there is still a lot of whitespace around the icon that is unnecessary.
I guess ideally I would like the pinned icons to look like quick launch icons in XP.
This will show you how to customize how wide you want your pinned taskbar icons.
How to Change the Windows 7 Taskbar Icon Width Size
Set the options
Adding/editing the registry entry
No, won't work. It only affects the behaviour of active icons, not the inactive ones. My advice: create a new toolbar (e.g. quickstart) and put your desired icons on that and loose the pinned icons.