Oh well, it's not that important I guess.

Seems like it should be a simple fix, but maybe it's an XP or IE7 bug??

Thanks for all your help...

I found a a workaround:

Create a new desktop shortcut (not an IE shortcut) -- Right click on desktop > click New > click Shortcut

For the target, enter: "C:\Program Files\Internet Explorer\iexplore.exe" http://www.sitename.com

Change the icon: Right click on icon > Properties > Change Icon

Drag the new shortcut into the folder. The Icon should follow.

Glad you got that to work out

Thanks again