+1

I am running Win 8.1 64-bit and I tried this but it did not fix the issue. 

I also agree that Icon Packager is a necessary component of Object Desktop.

My Bad. I rebooted and applied another package and My live folders now work even if they are not empty.

Thanks ACEMatrix

It speaks to the quality and ethics of Stardock and it's products that this thread has been open for over a YEAR with NO response from Stardock.  Considering a year+ is ample enough time to fix this bug within IconPackager, and at the minimum reply to this thread and others addressing the issue and when it will be fixed, as well as workaround instructions, its abhorrent this has yet to be addressed.  

I'm also running Win 8.1 Pro x64, and considering x64 is the main architecture used on newer PC's and Laptops due to the 4GB memory limitation of x86, to have a massive bug within IconPackager floating around since Win 7 x64 and not being fully transparent on the IconPackager and ObjectDesktop products pages is blatant incompetence and dishonesty.  the Stardock suite of products is an amazing collection of software, but this is beyond ridiculous. 

+10000000000000000000000000000000000000000000000000+1

But in reality I expect another essential skinning opportunity going down the drain.

The short answer is no... per posts above, this has been an issue for over 5 years, beginning with Win 7 x64.

I've thought about cancelling mine as well, however IconPackager isn't the only program you get in the subscription.  If you use other programs that are win 8/8.1 compatible (most programs in the subscription are) like WindowBlinds, Start8, ModernMix, Decor8, WindowsFX, etc. then I would recommend going through the programs you do use and pricing them both as individual purchases and as a subscription purchase.  Whichever one is cheaper is the solution I would go with.  

My guess, and I could be wrong, is that Stardock is not a large company... and for whatever reason have chosen, to my dislike and irritation as well as others, to not give their programs the simple capabilities of reskinning system live folders.  Windows 8 Manager from Yamicsoft allows you to point and click to change numerous windows skinned icons, however it only gives you two options for live folders (Desktop and Download folders).  

While you can edit system dll files, the downside is they will more likely than not fail the component store check (sfc /scannow and dism /online /cleanup-image /restorehealth) registering as corrupted system files.  If they do register as corrupted, both sfc and dism will replace the files, thereby losing all custom changes made.  Due to the fact you will need to run sfc and dism restore health commands at some point (I'd recommend no less than once a month, as I do mine once a week), it simply isn't worth it unless you make a copy of the dll's you edited and replace them manually after every sfc and dism scan.

To be honest,these 3 products are out of dates considering the current market trend on MS OS. The touch feature is much enticing than dock-clicking on desktop............etc.,

I can't agree more with everything that's been said above. IconPackager is systematically broken, with icons reverting to Windows default, Live Folders being permanently stuck on a certain icon package, etc.

But even more of a deal-breaker is the complete lack of quality, and most of all, complete icon packages available. Nothing Stardock can do much about, but still. Go to Wincustomize and you'll see that the icon skinning community is as good as dead.

I'll be looking for complete shell replacements that are still under development. Adios Stardock!

@ moshi

sound packager is not compatible with windows 8 either.

but I am running windows 8 and it works a treat

I normally don't like to bring up an older thread, but I just purchased Icon Packager and it does not restore the default live folders in windows 8.1 basic 64-bit. The advertising still indicates that it's fine for 8 and 8.1, so I'm wondering if I'm doing something wrong.

I'm still using Stardock IconPackager, one of the main reason I use Stardock. We keep paying to renew object desktop every year but some apps are litterally abandonned, like Icon Packager. Each fresh install of windows one of the first stuff i install is icon packager even if I'm sure it will ruin my entire icon system. Trying to go back to windows defaut is impossible once IP is installed. We pay enough for you to work/maintain/make sure the app works flawlssly, it was never the case with IP !

TIRED of feeling screwed.

IconPackager is great... if and when it works/applies itself correctly.  Icons very rarely ever apply the way they're set, and when they do, saving and re-applying the same package causes a cluster f*** of the wrong icons associated with the wrong files and folders... then to make it worse, applying the default win package doesn't fix the issue.

Great concept, horrendous application on Windows 8/8.1, as it appears Stardock has consciously decided to stop actively supporting the unique customization products they offer for Windows.