As of Inkscape SVN 17392 on Windows XP the settings work OK - changing the menu selection changes the size of swatches respectively when showing a long palette (say the standard) but when "Windows XP icons" is selected - more problems appear. The size does not change and causes some problems (the UI freezes for a moment when changing from tiny to huge) and in the huge mode the scroll does not work as expected. Also the shape does not seem to have any influence on the display (is all circumstances). I think this could be reworked slightly.
As of Inkscape SVN 17392 on Windows XP the settings work OK - changing the menu selection changes the size of swatches respectively when showing a long palette (say the standard) but when "Windows XP icons" is selected - more problems appear. The size does not change and causes some problems (the UI freezes for a moment when changing from tiny to huge) and in the huge mode the scroll does not work as expected. Also the shape does not seem to have any influence on the display (is all circumstances). I think this could be reworked slightly.