Right now (you've changed it since I last looked), this is what your source code says for the second, non working link:
HTML Code:
<link rel="shortcut icon" href="http://www.err32.com/images/.ico" />
and that will definitely not work (as you can see).
Just as an FYI, I have a favicon.ico located in both my root (public_html) and my forums (public_html/forums) and I have no html link to them in my source and they show up just fine since they are named the default name of "favicon.ico". So, you may want to just take out the link and see what happens.