Good to hear it worked
I haven't used iconian before, I've been experiencing color mess-ups sometimes as well and I don't exactly know what the problem might be. Several of my whdload games have messed up icons and I'd like see them fixed too.
I used to use "fullpalette" as a palette prefs replacement, with this utility you can adjust all 256 colors of the workbench instead of first 8.
Which game is your avatar from?