Go To C:\Program Files\InstallShield\2010\Redist\Language Independent\i386
Make a backup copy of "setupW.exe"
Open "setupW.exe" in visual studio as a file
Add the New Icon in Icon list
Delete the original icon with ID 100
Set the ID for the newly added icon to same as that one of the original one that we have just deleted.
Save the "setupW.exe"
Close Visual Studio
Build the project in InstallShield.
Now you get the new custom icon at "Setup.exe"