Hmm, ever start to doubt your sanity?
I just took at look at the source code and you have an extra forward slash at the end of the <link rel> tag. That needs removing and see what happens otherwise
If there is no icon file at that URL, I can only suppose that
1. It didn't upload properly
2. It uploaded to the wrong place
3. It's not called favicon.ico, watch out for upper and lower case on Unix/Linux servers
4. Your ISP doesn't fully support icons.
OK, last one is unlikely, since we have seen it!
Use your ftp program to make sure the file is there, that it's not zero Kb in size, and that it's not called FavIcon.icon or some such.
Here's hoping X-)