I guess this favicon thing is almost over. As you can see above, AI is now using the black Apple logo.
I have a few observations: the favicon is done with both 16x16 and 32x32 icon sizes, my question is why? The favicon is 7782 bytes (8K) in size (when I saved it with just the 16x16 size, the size went to 1406 bytes (4K)). You can also see that in Netscape 7+, the icon is not viewable in the address bar. And lastly, in Apache, you can add the following in the http.conf file:
AddType image/x-icon .ico
This way, the icon will be see in the browser window as an icon.