It's a verb, "to rice" means to deeply customize your system to suite your needs and/or preferences. Install a desktop environment, setup it however you like it, add panels with system information, etc etc.
The more h4xx0r-like and minimalistic, the more street cred you get.
Cosmetic improvements. Term originates from observations of asian-associated car decorations, which based on context is either a bigoted pejorative or an ironic compliment.
