After CHOOSE, you need to browse to a file that contains pictures to select from. Many executables (*.exe) contain folder icons. You acn also click on change icon to go to Windows standard set of replacement icons.

SORRY THAT I WASN'T CLEARER. I DO SELECT A PICTURE FROM A FILE AND CLICK O.K. AND THEN NOTHING HAPPENS. I DON'T HAVE ANY PROBLEMS SELECTING FROM THEIR PICTURE FILE.

IT'S IN THUMBNAIL MODE

Need to be in Thumbnail view mode, so only folders within another folder can be set to show the folder picture.

Does the picture appear on the folder in FOLDER PICTURES in PROPERTIES/CUSTOMIZE?

NO. I CAN'T GET A PICTURE TO COME UP. AFTER I CLICK CHOOSE AND IT GOES TO THE

If you can't get a picture to preview, then you have a problem beyond just setting a folder picture. Can you get a preview of the same pictures if you do it directly explorer?

I CAN'T GET A PICTURE TO PREVIEW THROUGH EXPLORER EITHER. I DID HAVE PICTURES DISPLAYED AS THUMBNAILS AT ONE TIME. THE COMPUTER   DID IT AUTOMATICALLY. BUT ONE DAY, AFTER DOWNLOADING A FEW MORE FROM MY CAMERA, IT JUST WENT TO A PICTURE OF A FOLDER! I THOUGHT I READ SOMEWHERE THAT YOU WERE LIMITED BY THE # OF PICTURES STORED AND THERE WAS A WAY TO INCREASE THIS #. (AFTER CHECKING I DISCOVERED THAT I STILL HAVE OVER 50% OF THE MEMORY AVAILABLE IN MY COMPUTER)  AS YOU CAN TELL BY NOW, I KNOW VERY LITTLE ABOUT THE WORKINGS OF A COMPUTER. AND I'M GRABBING AT STRAWS HERE TRYING TO THINK OF ANY INFORMATION THAT MIGHT HELP YOU HELP ME.      BY THE WAY-THANKS A LOT SO FAR!!

Windows can be forced to create a cache of thumbnails so that picture thumbnails will appear rapidly in picture folders. However without this cache, the thumbnails should still display, but will take longer because windows has to create all the thumbnails for each picture in each picture forder that is opened. They should still display, but slowly.

By preview I meant to right click on the picture and select PREVIEW. The picture should appear in whatever viewer program is set as the default viewer.

Are you working in Explorer or Internet Explorer. I'm not familiar with Picture Finder, but it seems to be used for web pictures.

I haven't used AOL for 10 years. Maybe some else has some ideas.

AFTER MY LAST POST I WENT TO INTERNET EXPLORER AND THE SAME DROP DOWN MENUES APPEARED AS WHEN I ACCESSED FROM AOL.  THE ONLY DIFFERENCE WAS. WHEN I CLICKED FILE AND THEN CLICKED OPEN,  THE DROP DOWN PROMPTED ME TO TYPE IN A FILE NAME.  OR I COULD CLICK BROWSE. I CLICKED BROWSE THEN CLICKED ON "MY PICTURES" ALL THE MENUES AND PROMPTS WERE THE SAME AS WITH AOL. AND WITH THE SAME RESULTS.

I did select "all files" during several of my many attempts. But I end up with the same results in the end. I did notice one thing though. when I  do select a picture and click open to view and send it to the customize screen, the customize screen folder will flash for a millisecond with the picture before just going back to a picture of a folder.  You know---------I'm really starting to feel bad about putting you through so much in trying to solve my problem.  So thanks again for all your efforts!!!