Desktop.ini a text file that allows you to specify how a file system folder will be viewed. Sometimes one of the shell folders (say, "Pictures") in your system may show a generic yellow colored icon instead of the special icon originally assigned to it. This happens if the Desktop.ini file in that folder is missing or has incorrect entries. This may also occur if the file has lost its read-only or hidden attribute.
For more information on Desktop.ini, see this MSDN article.
Here is a small utility DesktopINIFix that I wrote which fixes the desktop.ini file for various shell folders in Windows Vista.

Fig 1: DesktopINIFix for Windows Vista
Download: DesktopINIFix.zip
Note: After fixing the Desktop.ini, you may have to logoff and login back (or restart explorer.exe shell) for the folder icons to refresh.
SEE ALSO
Shell folders are displayed with the standard folder icon in Windows Vista
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@Steve:Check out http://www.winhelponline.com/blog/vista-desktopini-files-shown-on-the-desktop/
I have Windows7 x64 and was curious about this program as I have 2 Desktop.ini files on the Desktop. As all my “Folders” are Iconic I didn’t try the FIX button. But as a further note, all BUT these were able to display contents: DOWNLOADS, PICTURES and PUBLIC PICTURES.
If your interested, the contents of My 2 files are:
TOP INI:
[.ShellClassInfo]
LocalizedResourceName=@%SystemRoot%\system32\shell32.dll,-21799
[LocalizedFileNames]
Microsoft Office – 60 Day Trial.lnk=@C:\PROGRA~2\MIDDD5~1\mui\oaa.dll,-103
LOWER INI:
[.ShellClassInfo]
LocalizedResourceName=@%SystemRoot%\system32\shell32.dll,-21769
IconResource=%SystemRoot%\system32\imageres.dll,-183
After the MS Ofc Trial is over I’ll remove it and the top desktop.ini
Great program – Thankyou
i accidentally deleted my desktop.ini in windows/downloaded program files. how can i repair this?
the desktop.ini for contacts doesnt work it only could fix my documents :(
Hello. I really appreciate your desktop.ini tool and have used it several times in the past quite successfully on my Vista Home Premium system. (Thank you)… However, for some reason it no longer works on this same computer (w/Vista Home Premium). Instead, when I now try to run the program as administrator (or otherwise) I receive an “unspecified error” pop-up window with a red x on it… If you have any idea as to why this might be happening… or any suggestions on how to fix it then I would really appreciate it… Thanks.
Great tool! 5*
I LOVE this tool!!! Manually replacing desktop.ini is not only a bother, sometimes it doesn’t work. I’ve tried fixing it like 50 times before I found this program. Previous attempts were successful though, but this just saves the hassle.
Thanks!!!!
-Earl