The Home folder is a term used for describing the personal folder of every user under Mac OS X. Its name varies according to the name of its user. It has further subfolders (Documents, Music, Public, Sites, Movies) that help the user organize their files. It also contains a link to the user's Desktop items.
Each folder has the capability of being blessed with the proper System icon when the folder is correctly named. For example, if the Music folder were renamed, it would lose its custom icon, but would regain it, were the name to be restored.