I've had a problem for a while, now; I'm hoping someone out there has a fix.
I've got a pm6100, OS 8.6, 136MB ram. My launcher window is HUGE! It extends off the bottom of the display. As a result, I can't size it, and it hides anything behind it. I've tried zapping PRAM...no change.
Intel Mini 2.0,MDD DP G4/1.0, new iPad, iPhone 3G
How many Launcher items/categories do you have? If the Launcher window is large because it's jammed with icons, then try re-sizing the icons....hod the Command button while mouse clicking in the Launcher window. An icon selector box will appear....select a smaller icon size and see what happens