Making Folder Icons Pictures

[hookguy]

Is it possible to make a folder icon into a picture? So instead of the standard open yellow folder icon you can change it to a picture that you select? I thought this might be a good way of organising my folders, is it at all possible?

 

[aford10]

If you go to the properties of the folder, you can change the icon.

 

[hookguy]

That only allows you to use ico files as icons, I want to use jpg files as icons.