On my W7 x64 SP1, setting the "Never combine" option creates a separate button for each instance of an application, but it still groups all the running instances together. For instance, all Explorer Windows are grouped together beside each other, and they can only be dragged around as a group, not as individual items. I just applied "Never combine" and then opened Notepad three times, and minimized them all. The taskbar icons were next to each other at the right hand end of the row. When I dragged one to the left hand end, the other ones loyally tagged along, i.e. they moved as a group. I was rather touched by this. Am I missing something? AIUI, XP allowed both to have their way, with 7 it is one way or no way. My own preference is "Always combine, no labels", which seems to suit me just fine.