Rainbow Folders is a sweat little freeware for Windows which lets you colorize selected folders. The software has a size of roughly 600 Kilobytes and does not need to be installed at all. Just run it from the location that you unpacked it to. The application offers a folder browser on the left side and several options to change the selected folder on the right.
You can use the color bar to select a color for the active folder, change the saturation and choose if you want to use XP style icons or not. It is furthermore possible to create a so called Hint for the folder which is a phrase that popups when you move your mouse over the folder in Windows Explorer.

This is a nice way to customize special folders in Windows. It would be possible for instance to change the color of all media folders to blue, all application folders to red and so on. This is probably a better way than to change the icon for those folders.
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Great and it’s not resource-hungry either…
Nice little app, I personally use iColorFolder http://icolorfolder.sourceforge.net/ because it has the advantage of being able to color hidden folders as well (I couldn’t get hidden folders to show up in the tree when I tested Rainbow Folders (yes I do have explorer options set to show hidden folders))