Customize Desktop icons for all users

yes, right click on the desktop and choose new shortcut, use the wizard to navigate to what you what on the desktop. to change the icon you might be able to get cool ones on the net but the files usually have a default icon they use.

What I am trying to achieve is is, in XP when a user logs on for the first time he doesnt get the "My Computer, IE" etc icons on the desktop by default. You have to manually
Display>> Properties >>customize desktop and add them. I dont want to do this manual config for each new user. Is there a way that they appear on the desktop by default for all the users.

Local group policy editor may do what you want. To get more info, search for Local Group Policy in Help and Support.

To do this, you need to configure the Default User profile. Create a new user account, login and configure desktop and other settings. Logout, and login as an administrator. Open System control panel, click on Advanced, User Profiles, select your new user and click 'Copy To...', select C:\Documents and Settings\Default User' and click OK, select Everyone for permission to open this folder.
Now when a new user logs in, they will get the new Default User settings!