Not sure where to post this. It's been bothering me for awhile (about 2 months) but I never got around to posting it. I am running Bianca (just upgraded) and see the same issue. When going into the HOME directory, I create a subdirectory off home (say MY_DIR). Then I right click and select 'PROPERTIES', then I select an icon mod for my directory, specifically , then I save it. The file now shows my cool smiley on the directory.
However, when I log out and log back in, the folder is back to it's original no-smiley icon self. What am I doing wrong, or is this just a bug?