A new version of Color My Folder is available, but only on the DC board for now. I guess you could call it a beta. I changed the interface and added a dialog, added support for using custom icons (in the registered version), and made it shareware since I put a lot more time into it. I do plan on adding more icons later. Please read the help.pdf file (an icon is added to the start menu for this) and please let me know what you think. I would like to release an update to v1.x within the next day or so. Thanks!  :)

That is a limitation of the language I use, I can add items, but not in a sub menu. Sorry. Wish I could, I would have done that with all my other apps as well.

Hmm, well I completely changed the interface. It is no longer a menu. It is a dialog that list the default folder colors available if that folder has no custom icon already, if there is a custom icon set it shows the icon or icon resource the icon is in and allows you to choose your own custom icon file (I was thinking about making it shareware since I put a lot more time into this and selecting a custom icon would be in the registered version, but not sure yet). So, I should be able to allow custom text under the icon on the dialog. Right now I use a number that corresponds to the icon number in the icon resource file.

I am not sure I completely understand your second request. Maybe since it is now on a dialog, that would not apply? See the screen shot attached for the new look as it stands now.