Wrong Icons ?

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Why do I have some files that show an icon that is NOT associated with that file? Just noticed it recently. I have all the latest updates. OS X 10.3.6. Is there a utility that will "fix" icons? I understand it must have something to do with file types....but why? If the files don't show the proper icon can that affect the system running properly?

PM G4 MDD Dual 1.0Ghz 768MB 80GB stock machine.
 
I also have strange icons around sometimes too and would be interested in how to fix this (eg. a text file with a JPEG icon)
 
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