Yes, you can give a folder an icon, IE if you make a subfolder under 'programs' , but file explorers also show them :
create a textfile 'icon.lnk' and enter in it :
1#ceshell.dll,-162
save it and make it hidden....
It looks like the -162 is a code for the icon entry, some files take only '0',
(1#repllog.exe,0) ceshell.dll for example allows -142 -144, -147 and -148
Now on to linking other icons to links (program's, mortscripts !), read someting about it here
create a textfile 'icon.lnk' and enter in it :
1#ceshell.dll,-162
save it and make it hidden....
It looks like the -162 is a code for the icon entry, some files take only '0',
(1#repllog.exe,0) ceshell.dll for example allows -142 -144, -147 and -148
Now on to linking other icons to links (program's, mortscripts !), read someting about it here