

User can always re-create a normal shortcut to Internet Explorer browser to place on desktop.

The behavior of Internet Explorer 7, which is bundled with Windows Vista is also the same.
#HOW TO UPDATE INTERNET EXPLORER 7 TO 8 IN WINDOWS XP INSTALL#
As such, IE desktop icon no longer exists and the ability to display IE desktop icon by selecting option in Control Panel’s Desktop Items customization has also been removed from Windows XP on SP3 (actually it has been removed previously from Windows XP SP2 or earlier when user install hotfix updates or IE7, but there is trick to restore the IE desktop icon, which continue to applied now). In fact, this is not a bug and is by design, probably due to anti-trust litigation settlement which requires Microsoft to disintegrate IE from operating system so that other web browsers can compete freely with IE6, IE7 or even IE8 in future. In Windows XP SP3, the Internet Explorer option under the Desktop Icons section is missing, or disappeared. Previously, Windows XP user has an option whether to turn or off (display or not display) the IE icon on desktop, by going to Control Panel -> Display -> Desktop -> Customize Desktop, and enable or disable Internet Explorer under Desktop Items section, or right click on Desktop, and then go to Properties -> Desktop -> Customize Desktop, and tick or untick Internet Explorer in Desktop Items section.

The IE desktop icon is different from normal IE shortcut, where IE desktop icon is special shell shortcut that provides quick access to Internet Options, and has shorter right click contextual menu. In Windows XP SP3 system, no matter it’s been upgraded from Windows XP with no service pack, SP1 or SP2 with XP SP3 standalone update package or Windows/Microsoft/Automatic Update, or user clean install from scratch with an integrated Windows XP with SP3 CD ISO image, the special desktop icon of Internet Explorer (IE) browser on desktop has gone missing.
