I just updated Litestep to 2003-02-09 build and I'm using the default systray2.dll. The systray icons appear for about 1 or 2 seconds during startup and then suddenly, the taskbar grows over the bar to the edge of the screen. A !recycle doesn't help any.
SystrayTimerCleaning true
SystrayIconTimer 1
SystrayAutoSize true
SystrayWrapCount 0
SystrayDirection left
SystrayWrapDirection down
SystrayHeight $TaskBarHeight$
SystrayWidth 0
SystrayIconSize 16
SystrayIconSpacingX 2
SystrayIconSpacingY 2
SystrayBorderSize 1
SystrayBitmap TASK_m.png

sysTrayOnAdd "!TaskbarShrink 18 0"
sysTrayOnDel "!TaskbarGrow 18 0"