Hello Phil,
I'm not sure what you mean, the tutorial below can changed the default folder icon of all folders in both the 32-bit and 64-bit Windows 7 versions.
http://www.sevenforums.com/tutorials/23825-folder-icon-change-windows-7-default-folder-icon.html
Arc,
The only way that I know how to change the folder icon and still have thumbnail previews is to use a 3rd party program that does this. While I'm sure that there are many others that do, Stardock is the only one that I know of. Hopefully someone else may know of one for you.
Outstanding software ... I use it.

No it doesn't. It did in the 32bit but not 64bit.
Outstanding software ... I use it.
And it also fails to replace the live folders ...
In all fucntions > change windows appearence > system elements > explorer , there is only the option to change the open folder and the closed folder![]()
Try customize windows>file system>C:\ then look for folder, then replace icon.
Sadly, the only one it won't do is Windows folder. Never tried any other "live" folders though
Well Arc, I will TRY to help you - but if it doesn't work for you (and stuff mentioned seems to work for me) probably not catching what your after but still, try the above by Gamepoint - that failing, I'd say (I haven't a clue about "live folders" actually) perhaps :-
Icon Packager>Icons & Cursors>Folders and you'll see "Live Folder (back) and Live Folder (front)" there to change the icon with a right click
Maybe thats what your after ?