Let me clarify, On all builds if the usb stick is mounted on /media/hdd and there is NO picon folder already on there then when the box (not gui) is rebooted it should download the picons. Basically the box downloaded a zip file and unzipped them to /media/hdd/picon folder.
A couple of weeks ago I changed this on the H2H build, H52tc build is changing later today, now on the H2H, if the usb is mounted and there is no picon folder it will try to install them when the box is rebooted but using an IPK (plugin) rather than the zip file. The reason for this is two fold, firstly if for some reason the box doesn't download the picons, for which there could be numerous reasons, server slow or just bad internet connection etc then rather than keep rebooting the box they can now be installed via the downloadable plugin list, and secondly if there are updates, ie channel names then you can just delete the picons via the removable plugins list and then reinstall them. (not sure if software update might update them as not checked).
@skinner05 I don't think your brothers issue is caused by the picon system changing, but I did notice the other day another bug on the H2H build where the customise menu crashes the box again. I have got a fix for this but I've just not had a chance to fix the build yet, I don't know if this may also be causing your brothers box to slow, I've not noticed my h2h to be slow but will double check. Hopefully the h2h build will have the fix later today.