Sven Groot wrote:
Even if it's completely different if it doesn't work right it's still broken.
I object to your extrapolation that your problem means favicons are still "fundamentally broken". From my point of view, that's not justified by the evidence. There are many ways to have one-off bugs, things that work for a million machines but break on one. Favicons have not generated the scope of reports necessary for me to agree "yes, it's fundamentally broken". IE6 favicons were fundamentally broken.
So the feature has a problem that you can reproduce, so we need to figure out why you can demonstrate a problem and (many / most) others cannot.
Could be a third party (it often is), could be some code problem with IE. For example, one senior Microsoft exec couldn't drag-and-drop favorites around in Favorites Center but could in Organize Favorites. It turned out to be caused by a particular Explorer extension for his Thinkpad's CD burning software.
So as always, run in Add-ons Disabled mode, check what BHOs are loaded, etc. And as always, some things glom onto IE in ways Add-ons Disabled mode can't turn off, so even that doesn't guarantee no 3rd party code is running.