I came across a strange problem (submitted by a visitor) for which I wish to share the proposed solution.

The user customized a folder located inside the My Pictures folder. He did this by right clicking on the folder, selecting Properties => Customize => Choose Picture under the Folder Pictures section.

Now the problem is that the same picture is showing up on numerous folders all throughout the system. There are a very few folders that are not affected.  The Restore default button present in the Customize tab did not help either.

Here is my proposed solution, which'll reset the folder view settings (that includes the thumbnail folder icon assigned). Close all folder Windows, and then follow these steps:

Click Start, Run and type CONTROL FOLDERS
Select the View tab, and click Reset All Folders
Click Yes, and then OK to close the dialog

If that does not help, apply the fix at line #2 here:
http://www.kellys-korner-xp.com/xp_tweaks.htm
(titled "Increase Folder View Size Limit to 8000")

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Unable to remove the Thumbnail image for system folders in Windows XP?