Try to set the image.mem.decodeondraw pref to false on the about:config page.

• http://kb.mozillazine.org/about:config

See Bug 705516 - Missing Favicons in the Application Menu Bar

You should also update to Firefox 9.0.1

• http://www.mozilla.com/en-US/firefox/9.0.1/releasenotes/

The problem is actually on 9.0.1! The error should be corrected without the need to do special setting like about:config.... Reverting to the old Firefox might not be the best idea? I have the version 8.0.1 on other laptop, maybe I try to transfer that version; strange is there it says "Firefrox is up to date". I will probably just wait for Firefox update for some more days and I only wonder why this is taking so much time. BTW if you open "Show all bookmarks" the icons are there.

so is firefox going to fix this? I've wasted 5 hours trying to solve the problem.

Is anybody at Firefox recognizing that they have messed up on this and need to sort it out, there is no way I am going to mess around with any settings if it could screw up my computer. Is it possible to revert back to the older version of Firefox 8.0.1, and if so then how is it done. Any advice appreciated.