During the set up and customization of CRM, icon graphics are often overlooked. 

So, how do you update the icons for CRM?

1) Google to find some icons.

2) Use SnagIt to Make a 32 x 32 .ico file.

3) Resize the .ico file to a 16 x 16 .gif file.

4) Upload icons to CRM.

Here is a web demo on how I do it:

http://screencast.com/t/dIBhF5HUD1

PS.  In Microsoft Dynamics CRM 4.0, there is one additional icon that you can upload. More on that later...