Problem with changing folder/app icons in Lion

Hey,

Ever since I upgraded to Lion, I have been having issues changing the icon of any folder/app. I had SL and always saved all of my custom icon.
Here is what I do:
I go the the get info window of the folder/app and find the custom icon on my desktop. Then I drag and drop the icon to the top right corner, simple process. I have done it many times on SL.

However, when I do that on Lion I get a generic icns, ico, png icon (see screenshots). I even tried to copy and paste the custom icon to the icon on the top left corner of the get info windows, but get the same result. I also tried and downloaded different icons with different formats, but get the same results. I even did a clean install (for a different purpose) after upgrading, but still have the same problem.

Anyone have a solution or has experienced a similar problem?