TWC in conjunction with Lee Whittington have released IconCache Rebuilder for those of you experiencing weird problems with your icons in Windows 7.
[UDATE - See Rich's How-To guide to fix your corrupt icon cache manually]
Sometimes you may find an icon that just won’t display correctly no matter what you do.
For example, you see here, my Normal Select.cur is completely wrong.
After running IconCache Rebuilder, the icon now displays correctly.
All you have to do is download IconCache Rebuilder.zip, extract and run it. Make sure that Icon cache located is reported and click Rebuild.
Windows Explorer will be restarted so make sure no copying/moving is occurring and any open programs are saved just in case.
When IconCache Rebuilder has done its job, you’ll be notified Windows needs to be restarted to apply the changes. Click OK.
If you don’t want to restart your PC immediately, just right-click the icon on the taskbar and click Close window.
Otherwise Click Restart PC
If you run the program and it reports the Icon Cache could not be located. You may need to reboot your PC and try running it again.