Well... it still didn't work. I really appreciate the advice. I attached a screen shot of my music folder after I unchecked the "Hide protected operating system files" It showed some of the album art but it didn't actually fix the problem. look at the screen shot and you will see. Most of the album art is still not showing.
In the screen shot I played one of the songs so you could see that the album art is still properly attached to the mp3 file, as well as the song title, artist, track #, and other info, because WMP12 is still reading this info without a problem. the album art should be displayed on the icon, as well at the bottom left corner of the screen shot where I circled it (see the attached screen shot)... But its not.
One thing to remember is that not all the album art is missing for the icons, but about 90% of them are. Weird huh?
I'm sure my problem has something to do with the mp3 editing software I installed previously, that's when I noticed the problem. I have uninstalled all those programs, but nothing changed.