Did you install FlashFXP under an administrator user?
FlashFXP needs to add an entry into the HKEY_CLASSES_ROOT section of the registry, so it can reference the parent folder icon via the windows system imagelist.
FlashFXP will attempt to fix the parent icon each time it is run.
You might try deleting the key FlashFXP_PI from HKEY_CLASSES_ROOT, It will be recreated by FlashFXP.
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