This article describes how to remove or modify the overlay (arrow) shown for Shortcuts in Windows 7 and Windows Vista.
This article describes how to remove or modify the overlay (arrow icon) shown for Shortcuts in Windows Vista.
Download Vista Shortcut Overlay Remover (FxVisor) from frameworkx. FxVisor allows you to either way to modify or remove the shortcut overlay arrow in Windows 7 and Vista. Here is the screenshot of that utility:

Removing the shortcut arrow: Download blank_icon.zip and extract the file blank.ico to a folder of your choice. In this example, we use C:\Icons\blank.ico as the path to the icon file you downloaded. And then follow these steps:
HKEY_LOCAL_MACHINE \ SOFTWARE \ Microsoft \ Windows \ CurrentVersion \ explorer \ Shell Icons
Note: If the Shell Icons branch does not exist already, you'll need to create it.
Setting Light arrow overlay: If you wish to use a light arrow for Shortcuts, you may do so by downloading lightarrow.zip (includes lightarrow.ico). Copy lightarrow.ico to your Icons folder, and set the Value data for 29 accordingly (see Step 4 above). If you've copied lightarrow.ico to your C:\Icons folder, the Value data would be C:\Icons\lightarrow.ico
(Fig) Shortcut overlay - Light arrow