Garrett,
Through a bit of trial and error; When you set your icon in the shortcuts/folders section, it will default to an index of :0 delete that zero so that the field is blank and the correct icon shows up. Worked for me anyway.

Well I got that problem licked now of course another pops up. All the Icon Editors I have tried just dont work with installshield. I need to create an icon that has multiple index images inside it. Everytime I do this with someones editor, Installshield dosent see them.

For Instance I may create an icon with 2 images:
a 32x32 16 color
a 16x16 16 color

it will look great in my editor program. but when I open it in installshield, I only see the first index image.

Consequently when the program appears in the control panel under add/remove programs. My icon isnt displayed.

On the other hand, I can open a windows resource like, winhelp.exe and it shows me several icon images to choose from. I have tried 3 different icon creators.