>you have to either use a 16x16 icon in the first place or have 2 versions
>look at the MS KB there is an article which describes this for 3.0b

Here's more info.

After making my icon selection, even if the project manager don't want to show it in the icon preview of the project info first page, I decided to try to compile the EXE. Running the EXE was showing me the new icon at 16 by 16. However, the Explorer still show the fox icon.

So, 32 by 32 or 16 by 16 doesn't make a difference.