Not completely sure if I understand your problem but first try this and let us know if it fixes it.
Click on Start>Settings>ControlPanel>FolderOptions>View.
Now Select "Show Hidden Files and Folders". Also, I don't have Windows ME in front of me but if you see a setting to "Hide Protected Operating System Files and Folders, Un-select it. Now click on Apply.
Now do this
Click on Start>Find>Files, key in Shelliconcache and press enter. When it's found, right click on it and select Delete. Now restart Windows. That will force Windows to rebuild your desktop shell icon cache file.
Let us know what happens.
Click on Start>Settings>ControlPanel>FolderOptions>View.
Now Select "Show Hidden Files and Folders". Also, I don't have Windows ME in front of me but if you see a setting to "Hide Protected Operating System Files and Folders, Un-select it. Now click on Apply.
Now do this
Click on Start>Find>Files, key in Shelliconcache and press enter. When it's found, right click on it and select Delete. Now restart Windows. That will force Windows to rebuild your desktop shell icon cache file.
Let us know what happens.
