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Locate & click on the Live Folders tab under the Look & Feel main tab.  Windows Vista has a new feature called Live Folders.  A Live Folder icon displays a small thumbnail image of the contents in a folder.  To see Live Folders for a given folder, the icon view (size) in Explorer must be set to medium or larger.  If an icon package doesn't support Live Folders, the package won't appear in the list.  Select an icon package from the list at the bottom of the window & IconPackager will display a sample of the live folder icons in the preview area.

Look & Feel: Live Folders. 

You can select which icons are used for Live Folders, the choices are:
 Action   What it does 
Always use the Live Folder icons defined in the current Icon Package. This will always use the Live Folder icons included in the selected icon package.  If the package doesn't support Live Folders, it will use the Windows default icons.
If the Icon Package has Live
Folder icons defined then use it, otherwise use the Live Folder
icons selected below.
Not all icon packages support Live Folders, so IconPackager will use the Windows Default Icons.  If you don't want to use those, this option will use the package you select from the list.
Always use the Live Folder
icons selected below.
If you select a package from the list & select this option, it will override the icons included in the icon package applied to your computer for the majority of your icons.  This allows you to use the icons of a different set.

After making any changes, click Apply Changes. to change the Live Folders on your computer.

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