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My favicons were working for the longest time with the sneaky peeks, and then with SP7, then they *stopped* working. OW would randomly replace one or two sites with the blue globe icon (which I MUCH prefer to the ugly purple bookmark link, BTW!). And sometimes, after a day or two, OW is re-replacing the globes with the original icons again.

For me, this bug makes things a bit difficult because I have about 15 bookmarks in my favorites bar with no label – I rely on the favicon to know which bookmark is which.