Applying Images to File Folders in Library- is it possible?

Awhile back, I thought I read something online that said it was possible to add an image to the folder icon in your file library I have tried to find a tutorial or info on this, but not had much luck.

Basically, I want to know if it is possible to still show the folder icon, but add an image to it. I have several hundred folders that each contain documents and images for research on textiles; being able to superimpose an image of the textile type for the folder would make it much easier to locate the ones i want than by looking at hundreds of blank folders with textile names, as the name doesn't always conjure up what the fabric looks like in my head.

Is this even possible? I don't want to replace the folder icon with an image; I want to put an image on the folder icon.
Something like this:

I am using a Toshiba laptop, running Windows 7 home premium. The only catch to this I'm not sure about,



is that my filders appear sideways, instead of flat (like this):

which would would render it pointless to place an image on. But again, am almost positive I read that you could.

If this is possible, any input/advice/how- to would be hugely appreciated :)

For the record, I'm not very tech-terminology savvy, so if at all possible, please break it down to me in layman's terms.

Thanks so much,

Here is a great little tutorial | Make *.ico file in 30 seconds
If you're having trouble, just ask :) .