In your WPF application you will have at least two places to set icons:
- The application icon. This is used for displaying the application in Explorer, desktop, etc. You set this in the project properties.
- The window icon. This is used as icon in the upper-left corner of the window, and perhaps for alt-tabbing and on the taskbar. You set this as the Icon property on the window.
Often, you may use the same icon file in both cases. However, if you have a compressed 256x256 icon as window icon, then this can crash in Windows XP. This is what you are experiencing. On the other hand, this not the case when the application icon has a compressed 256x256 icon.
So another solution (which I implemented in all my projects) is to have two icons: The application icon (which contains all sizes) and a special "window icon" version, which only contains the sizes 16x16 and 32x32 (since those are the only sizes which are used).