To customize a file or folder icon, open the image you'd like to use for the new icon in Preview. Press Command-A to select the entire image, then use Command-C to copy it. Next, locate the file or folder you'd like to change the icon for and press Command-I or right-click and select "Get Info". With the information dialog window open, select the icon you'd like to change and press Command-V to paste the new icon in its place.
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