Well this has certainly been an educational question.

Networking I can do in my sleep, media and graphics formats OTOH ... I'm dumber than a stump. Thanks for the info vlastimil!
Also, what's the point of having an .ico with 512x512 image instead of plain .png image? I do not think Windows can effectively use it, the icon sizes Explorer and other windows components display are limited to 256x256 pixels anyway.-vlastimil
(guessing this is directed at me) Well... I'd actually thought that somewhere in the Vista/7 range that the icons had been bumped up to 512. So I was trying to reuse a single .ico file to (control compiled binary size) be used as both the main app icon, and a splash screen/about dialog image. I'd actually first experimented with this in Got Space during the last NANY. The first builds contained an about dialog that displayed only a large image of/from the app icon's .ico file. It took a while to figure out how to get the .ico to display full size, but once I got it to "behave" (deleting reaganging bits), it would fill the entire dialog window. If the max size image in the .ico file was smaller than 512x512 the image displayed in the dialog would also be smaller and not fill the window. *Shrug* I assumed... The behavior was correct (/confirmational) and not (apparently) just a hack/fluke.
So I was planning to reuse this method to get the .ico file to also supply the 512x512 graphic for the onload splash screen...because it seemed to have worked before.
On a side note: I am using that image for a business management program because it is going to need to be put into limited production use in a "modular fashion" (e.g. before it is completely finished). The graphic is to remind everyone (that the freaking back door is wide open) of the risk involved in this behavior.