I had this issue with X1 as well, when I go to select a track icon all my files appear as the same painters pallet. Is there something I need to change with Windows 7 64 bit?

then right clikc and choose the option to display the pictures ;)

No, I am right clicking to change the icon but every single icon selection looks the same "a cartoon of a painters tray" That is what I want to fix so I can see a Les Paul vs. a Strat vs. a cello...

IIRC un-check show icons / thumbnails in folder options.

You want to see a picture of the icon so you can decide which is best right? You can't from the browser. This is a very unfortunate oversight on CW's part. You have to do it the old way by opening the file location (folder) by right clicking on the area of a track icon to see the thumbnails. There is no good reason why this isn't available in the browser. 

Thanks Carl. Appearance and Personalization: Folder Options: View: I unchecked "Always show icons, never thumbnails" and "Display file icon on thumbnails" Now icon selection works the way it should.