When I created a new folder I was able to select the folder icon among a select predefined icons. Is there a way that I can create my own icons and use them for the created folder?

You can only create folder icons using the icons provided by RIM, their are a few different choices. No way to import custom images.

Also you posted in the 96xx series forum but your profile says 9550?

Thanks I just switched to a 9650 but forgot to change profile.