I haven't noticed the Win 98 system icons changing at all. Probably another goofy MS bug. Oh well they do change back later.I'm reasonably sure that this is a Microsoft bug that's unrelated to the Logo Editor.
I think it's related to the desktop extensions of Win98 and (back in the old days) the IE4 upgrade for Win95.
Here's what I've seen happen: At some point in time, you install a new program that adds a new file "type" to the system registry. This "type" has an associated icon, and various right-click shell extensions. These settings all go into the registry for hkey_classes_root.
I've seen these kinds of alterations sometimes cause certain desktop icons to become de-synchronized with their actual file types. I don't know if it's because they added themselves to the registry wrong, or if it's because Windows doesn't do the right thing, or if it's the video driver, or what.
All I know is that it's been happening in Windows versions (on many different computers) ever since that first goddamn IE4 desktop extensions update. And since they've got that active desktop crap in every OS since then, there's no avoiding the bug any more. Grrr.
If you have ever used the Microsoft Power Toys set (don't they include that somewhere on the Win98 CD now?), the TweakUI program has been known to fix that problem for me. Under "repair" it has a "rebuild desktop icons" command which seems to do the trick for me.
There's also a way to force the desktop icons to be rebuilt manually, but I'm not sure I remember it well enough to recount it here. (I think it involved deleting the shell icon cache file, then going into appearance, increasing the icon size by one pixel, hitting "apply", then putting the icons back to the correct size, forcing the system to rebuild its icon cache?)
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Tony Fabris