My favicon stopped showing up some time ago on my blogger page, but until now I was just too lazy to investigate. Turns out that blogger adds the following line in the header:
<link href='http://www.blogger.com/favicon.ico' rel='icon' type='image/vnd.microsoft.icon'/>
Which overrides my favicon setting. The solution? Put your favicon declaration after the following line in your template:
<b:include data='blog' name='all-head-content'/>
Something like this:
<b:include data='blog' name='all-head-content'/> <link href='http://hype.free.googlepages.com/info.ico' rel='shortcut icon' type='image/vnd.microsoft.icon'/>
I tested it in FF3, Opera 9.50 and IE7 and it works in all three of them.
Hope this helps.