I was having several issues with IconServices. First it was large memory usage. Later is was high CPU usage. Right now it's hovering around 10MB which is better than the 300MB I was seeing before. Here is what I did to to get it to behave better:
Open terminal and type:
cp ~/Library/Preferences/com.apple.finder.plist ~/com.apple.finder.plist.backup
rm ~/Library/Preferences/com.apple.finder.plist&&killall Finder
This seems to restart the IconServices process and make behave better. This lasted about a week. Next I noticed that the IconServices process was taking up a large amount of CPU usage, but the process was running as an alternate user. I also noticed several read/write errors in the log. All related to /var/folders. The runaway process might be related to not having access to the /var/folders. So I force quit the other user's process and then ran:
sudo chmod -R o+rxX /var/folders/*
This will allow all users to read/write to everything in /var/folders.
Next I rebooted. This seems to have solved the memory and CPU problem, atleast temporarily. I'll keep an eye on it over the next few days and report back.