Hey there Rowan! Good to hear that it runs on W7. 
The icon had wrong proportions I suspect. I edited them to be 32x32. So try the attached version (just copy over the old tv_out.icl).
You should be able to permanently use completely different icons by saving two of them as tv_out.icl ( IconSushi is the tool I use for that -- http://www.towofu.net/soft/e-index.php ) and then replace the standard tv_out.icl file with the new one.

The icon had wrong proportions I suspect. I edited them to be 32x32. So try the attached version (just copy over the old tv_out.icl).
You should be able to permanently use completely different icons by saving two of them as tv_out.icl ( IconSushi is the tool I use for that -- http://www.towofu.net/soft/e-index.php ) and then replace the standard tv_out.icl file with the new one.





(And don't forget that the new .icl should overwrite the old - you can't give it another name or put it in another folder.)

Knowing that tv_out is fully compatible with W7 will make the future move to W7 a bit easier, at least for me 