---UPDATE UPDATE ----
Problem is fixed.
Login as root
The problem was in the
/usr/share/icons folder
go into the theme directory that you are using.
open up the
index.desktop file inside an editor
Go to the line that says
DesktopDefault=48
change it to read
DesktopDefault=32
save the file and then relogin.
they should change back to the right settings for size 32 icons.
you will have to do this for all the
index.desktop files
inside every theme directory you plan on using.
ENJOY,
Luis