You can edit icons and other small images and customize desktop and folder icons

Aha-soft IconXP allows you to edit icons and customize the Windows desktop appearance. It supports the new icon format introduced in Windows Vista (employs smooth transparency and other visual effects). Using this program you can create and edit icons in either standard or custom sizes, with color depths up to 32-bit True Color with 8-bit alpha channel. Paint tools include: color replacer, color selector, spray can, pencil, brush, flood fill, text tool, line tool, rectangle, curve, ellipse, 3d frame. Modifiers can also be used to apply color gradients and chess fills. For Windows XP icons, you get to add cool drop shadow and smooth effects. IconXP supports .ico, .ani, .cur, .wmf, .emf, .bmp, .jpg, .jpeg, .gif, .png, .xpm, .xbm, .wbmp, Mac OS icons and Adobe Photoshop .psd file formats. You can import images from screen captures. IconXP allows you to import, export and change color palettes for icon images. IconXP allows you to change standard Windows icons, folder icons and customize desktop attributes. You can easily replace, colorize and save the icons Windows uses to display various objects - My Computer, Recycle Bin, Internet, Start menu items, drives, system folders and your own folders. You can also hide or change shortcut overlays. There are also commands that change the desktop icons size and color resolution, and rebuild the icon cache.