The tutorial to add your own favicon to your blogspot blog has been updated on Free Favicon to reflect a change that Google/Blogger.com did to peoples templates. Many thanks to Google/Blogger.com for breaking things for many people. Nothing like them pushing their own brand. I guess it was not enough that everyone has to link to Blogger.com from their blogs anymore. There is some more information on what Google/Blogger.com did at the Free Favicon blog and how to fix it.
At any rate you should see the Free Favicon custom favicon on this blog again. It should look like this: