The default system icon is displayed for Internet shortcut files when you use Internet Explorer 7 on a Windows XP SP2-based or Windows Vista-based computer

You upgrade Microsoft Internet Explorer 6 to Windows Internet Explorer 7 on a Microsoft Windows XP Service Pack 2 (SP2)-based computer. Then, you notice that the icon that is displayed for Internet shortcut files changes to the default system icon. This behavior may also occur after you upgrade the computer to Windows Vista.

Windows XP SP2

To work around this problem on a Windows XP SP2-based computer, follow these steps:

1. Click Start, and then click My Computer.
2. On the Tools menu, click Folder Options.
3. In the Folder Options dialog box, click the File Types tab.
4. In the Registered file types list, click URL Internet Shortcut, and then click Advanced.
5. In the Edit File Type dialog box, click Change Icon.
6. In the Looks for icon in this file box, type %SystemRoot%\System32\Url.dll, and then click OK.
   
   Note %SystemRoot% represents the folder where Windows operating system files are installed. Typically, this folder is the C:\WINDOWS folder.
7. To close the Edit File Type dialog box, click OK.
8. To close the Folder Options dialog box, click Close.

Windows Vista

To work around this problem on a Windows Vista-based computer, follow these steps:

1. Right-click the Internet shortcut file, and then click Properties.
2. In the Web Document tab, click Change Icon.
3. In the Look for icons in this file box, type %SystemRoot%\System32\Url.dll, and then click OK.
   
   Note %SystemRoot% represents the folder where Windows operating system files are installed. Typically, this folder is the C:\WINDOWS folder.
4. To close the Internet shortcut file properties dialog box, click OK.
5. Repeat steps 1 through 4 for other Internet shortcut files.

Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.