I couldn't seem to svn your project, but if your latest 2.1 deb is close enough, then your icons look fine.

But I'm just a simple caveman and your desktop ways scare me. If your project was mine, here is how my tablet desktop file would look:

[Desktop Entry]
Encoding=UTF-8
Name=Papywizard
Icon=papywizard
Comment=We put the Pap back in Wizard
Exec=/usr/bin/papywizard.sh
Terminal=false
Type=Application
Categories=Application;Internet;
X-Osso-Type=application/x-executable

Maybe just give this a try with my other steps above. And just to be safe, after updating the icon cache, go straight to reboot; don't go lookin' at icons.

Also, not that it matters, but it couldn't hurt to have a '!' after the '#' at the top of papywizard.sh.