The manner in which the favicon is associated with the site hasn't changed in over a year. It's not in the code because it doesn't have to be in the code. Browsers pick it up because they're looking for it.
It seems to be picking it up correctly for me in both IE and Firefox.
No, I have the very latest Firefox build. There's a yellow box with a checkmark in it in my bookmarks. The favicon appears in the url bar and in the tabs, but that's it. This is obviously one of the signs of the coming apocalypse.