I'm using http://telegraphics.com.au/sw/ 's ico plugin to easily load ico files in photoshop(vs converting to png first)... This made it easier to use ico files.
I have a custom .NET exporting program that works fine EXCEPT when it tries to save layers to disk, when it comes across some layers, the ico plugin pops up telling me "Choose icon - the ico file contains 7 icons" etc. The same thing when you import an ico file.
This breaks the work flow and doesn't even export it properly since I've manipulated the ico by applying effects and rasterization.