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Is it possible to fix the pixelated icons on the Desktop files and folders, dmg disk image content items, etc?

Try this command in Terminal to rebuild your launch services database (Mountain Lion):

/System/Library/Frameworks/CoreServices.framework/Versions/A/Frameworks/LaunchServices.framework/Versions/A/Support/lsregister -kill -seed -r

The database takes several seconds to rebuild, so be patient.
Restart the computer after you run the command.

Let me know if this helps at all.
 
This is what I get:

-------------------------------------------------------------
/System/Library/Frameworks/CoreServices.framework/Versions/A/Frameworks/LaunchServices.framework/Versions/A/Support/lsregister -kill -seed -r
SystemFlippers: didn't consume all data for vers ID 1 (pBase = 0x10200e610, p = 0x10200e61e, pEnd = 0x10200e61f)

SystemFlippers: didn't consume all data for vers ID 1 (pBase = 0x10233620c, p = 0x10233621a, pEnd = 0x102336234)

SystemFlippers: didn't consume all data for vers ID 1 (pBase = 0x10221a104, p = 0x10221a12a, pEnd = 0x10221a13d)

SystemFlippers: didn't consume all data for vers ID 1 (pBase = 0x1022be8e0, p = 0x1022be916, pEnd = 0x1022be940)

CoreEndianFlipData: error -4940 returned for rsrc type kind (id 128, length 54, native = no)
CoreEndianFlipData: error -4940 returned for rsrc type kind (id 128, length 54, native = no)
CoreEndianFlipData: error -4940 returned for rsrc type kind (id 128, length 54, native = no)
-------------------------------------------------------------

Is that right?

After shut down and cold booting, the problem remains: pixelated icons on Finder items (files and folders), USB pen drive icons mounted on Desktop, icons of items inside mounted ".dmg" disk images, etc.
 
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Thanks

This worked for me, no idea about the folders

Thanks Feed Me.

I skipped running the terminal command after fixing first two icons. Just dragging the blurry icon from launchpad window onto launchpad icon in dock made them nice and sharp. I think other icons that weren't so obviously blurry are sharper now too!
 
Thanks Feed Me.

I skipped running the terminal command after fixing first two icons. Just dragging the blurry icon from launchpad window onto launchpad icon in dock made them nice and sharp. I think other icons that weren't so obviously blurry are sharper now too!

Thank you! Just started noticing this issue and driving me nuts trying to find a fix, came across this post and worked like a charm!
 
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