Since installing Windows XP Service Pack 3, I've got a really strange problem with how icons are displaying.
The picture below better illustrates the problem:

Not all the folders are like this though, My Music, My Pictures and all the icons on the Start menu are fine.
So far I have tried re-building the icon cache using TweakUI, manually deleting the IconCache.db file, changing the size of the icons to something much smaller and assigning new icons to folders, none of which made any difference
What is causing the icons to display like this and how can it be fixed?
The picture below better illustrates the problem:
Not all the folders are like this though, My Music, My Pictures and all the icons on the Start menu are fine.
So far I have tried re-building the icon cache using TweakUI, manually deleting the IconCache.db file, changing the size of the icons to something much smaller and assigning new icons to folders, none of which made any difference

What is causing the icons to display like this and how can it be fixed?

