In http://forums.cnet.com/5208-6142_102-0.html?forumID=31&threadID=238488&messageID=2448234&tag=mcnt#2448234 it was more or less established that the solution of changing the icon cache was only temporary, until the next boot and then the problem returned.
I do hope indee Microsoft patched IE7 in the meantime so that the exact same solution now works permanently. That would be very nice.
Can you assure us it does?
I posted a thread in here, around middle of March, regarding this annoying problem. I posted it in a few other forums, as well and FINALLY I got a solution that worked!!! I had uninstalled IE7 and now just got it again. I put a data CD in to see if Microsoft had fixed this problem. If was of my digital pics and sure enuf, those blue IE7 icons were on everything. I tried this solution given to me in another forum and IT WORKED!
So,if you have IE7 installed and are one of us few experiencing this buggy annoying problem, here is what to do, without going into your registry:
To resolve this problem, modify a display setting to force
Windows to update the icon cache. To do this, follow these steps:
1. Right-click a blank area of the desktop, and then click Properties.
2. In the Display Properties dialog box, click the Settings tab.
3. In the Color quality list, select a color depth other than the current color depth.
For example, if the current color depth setting is Highest (32-bit), click Medium (16-bit).
4. When you are prompted to keep the new settings, click Apply, and then click Yes.
5. In the Color quality list, select the original color depth, click Apply, and then click Yes.
6. Click OK to close the Display Properties dialog box.
I have no idea what this problem has to do with Color quality, but this solution worked great!! To test it, I put that same CD back in, opened it and NO MORE blue IE7 icons!
Here is a Microsoft link about a similar problem, same solution: