Yes, I'm also having the same problem, using v1.6.8. I am running
Microsoft Windows v5.1 (Build 2600.xpsp_sp3_gdr.100427-1636 : Service
The "icon cache settings to shell" fix worked.
One of my coworkers is using Tortoise v1.6.12, and he does not have
the same problem. The SAs set up most of our workstations identically,
but my workstation has the problem and some other people's
workstations don't. I'm not sure how to narrow the issue down further,
but it is quite a nuisance.