Padlock obscures icon image

[bobtarrel]

When the folder icon is the standard file folder, the padlock is relatively small.  But when the folder icon is a custom image, the padlock is suddenly very large and obscures important parts of the icon image.  How can I get the padlock back to its small size?

Related to this perhaps is that when I remove pictures from the wise protected folder, the pictures are no longer protected, but their thumbnails still show the padlock.  How do I get rid of the padlock?