>I installed my app on a new user today from a netsetup (win95). First, I noticed the Setup.exe was a DOS icon. The setup ran okay, but my icon placed on desktop was also DOS icon, and cannot be changed to the custom icon. Then I noticed in many other windows applications the .EXEs are also DOS icons in Windows Explorer on the machine.
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>Does anyone know how to correct this? I am looking in File Types, extensions, but have not found the right place yet, if it's there.

This is usually caused by the source for the icon not being present on the target system - for example, if you select an icon from moricons.dll, but it is not present on the target system, the default icon for the file type is used. Check the \WINDOWS\SYSTEM directory for the common icon sources.