CVI doesn't assume you want every file in the project directory in the distribution. It defaultly builds a distribution for the files that it knows you need (EXE, CVI Run-time, UIR files). Support files such as ICONS, help files, INI files, etc. that are needed by your project, you need to put in the distribution kit yourself. You would do this in the Create Distribution Kit dialog. You would add the ICON file to the default group of files for your project since you want it in the application directory. If you wanted to include support files and put them in other directories or subdirectories, you could create new file groups.
Best Regards,
Chris Matthews
National Instruments