Stardock has released IconX 1.1. IconX is a program that enhances your existing Windows desktop icons.
When run, your desktop icons instantly look better. IconX can add shadows to your icons, graphical backgrounds to your icon text, sound effects to different mouse interactions with your icons, animated effects for different events, and even automatically have icons zoom up on mouse over (something users used to do by hand with DesktopX). Users can save their different setups as IconX themes that can be shared with others. Users can also replace their desktop icon images with PNG files instead of only being able to use .ICO files.
Screenshot: IconX in action
Screenshot: Fun with icon labels
Screenshot: Using shadows to make great icons incredible!
Download: IconX 1.1