karmic beta problem since latest update

I just got the latest update that included the latest kernel 2.6.31-12 after a reset icons changed to unconnected type icons meaning many extensions like gif, .png, .sh, etc. now have a gedit type style icon. The bluetooth and network applet icon is now little tiny icons in the tray by the current time. and now there is little writing on the desktop and in different areas, any window I open they appear.

these little writtings of script are written everywhere and what is displayed comes from scripts that is within that folder. I will provide a screen shot if necessary, but I'm guessing you probably know what i mean.

Also a few of the shortcuts I made are now not working and the icons are now all gedit style type.

Anyway I'm hoping that an update will resolve this issue or that someone may be able to help me solve this problem.

I tried booting up with the last kernel prior to the update and had the same results.