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@RandomBen - well, it definitely changed when I used non-default, which is weird. Thanks for the feedback. Good tip about different files for different browsers - thanks.
@RandomBen - having said that, at the SO answer there does not seem to be a one size fits all - it looks like I need to choose between IE & Chrome. Perhaps I should not use .ico?
@Lèse majesté - good point, sorry. I think the pixelated comment in the answer below summarises it well. E.g. the image contains one letter, very clearly (in FF & GC). But in IE it is unreadable.
