I just logged in to Webmaster Tools and saw the sites' favicons next to their URIs.
It makes finding the site in the list much easier and looks so much better too.
3:43 pm on Jan 14, 2010 (gmt 0)
I noticed this as well on Monday. Nice touch.
3:51 pm on Jan 14, 2010 (gmt 0)
Yeah, that's nice.
However, I notice that the favicon does not appear for one site I manage that doesn't use the standard name "favicon.ico" for its favicon. The appropriate LINK elements are in the page pointing to the custom favicon and it works OK in the browsers I've tested.