All, did some research found another way to hide the recycle bin from your desktop. Run gpedit.msc and do the following:
1. Click Start, click Run, type GPEDIT.MSC in the Open box, and then click OK.
2. Under User Configuration, click Administrative Templates, and then double-click Desktop.
3. Double-click Remove Recycle Bin icon from the desktop.
4. Click the Setting tab, click "Enabled", and then click OK.
5. Reboot
Recycle Bin should not be there anymore, but can be restored if you do the reverse. I adapted these instructions from Microsoft's Knowledge Base Article 810869:
Link here: http://support.microsoft.com/?kbid=810869
I wasn't certain that it would be restored if I reversed what I had done in GPEDIT, so I tested it to be sure before posting this. The recycle bin was restored after resetting back to "Not Configured" and rebooting.
I realized that you're supposed to do this even more easily with TweakUI, but for some reason the option to hide or show the recycle bin doesn't appear amongst the settings... time for more research...
Note: this will only work on XP Pro! XP Home Edition does not support Group Policies, per Microsoft's web site. That said, I hope this helps some of y'all...

[Message Edited]