http://bugs.winehq.org/show_bug.cgi?id=20598
--- Comment #24 from BD bad_dude32065@yahoo.com 2009-12-29 13:51:34 --- (In reply to comment #23)
There's no need to play with subdirs, try to revert regressed commit mentioned here. There's most likely no relation to 16-bit separation you've mentioned.
the above patch got the icons working now. using fresh wine-1.1.35 source i used patch -p1 < setdibits.diff then ./configure && make depend && make ty for the fix.