The Iconfactory today announced the 7th installment of Pixelpalooza, their annual icon design contest. For this year’s event, they have combined the Illustrative and 3D categories into a single category called Classic, for those of you who still enjoy the challenge of working on a 32×32 pixel canvas. The OS X category, which was the most popular last year, returns again this year unaltered. New this year is the CandyBar category, which should prove to be very popular based on the success of their icon switching software. Head over to the Pixelpalooza pages for official contest rules, guidelines and information on this year’s great prize packages.