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Everything is set fine,
Give a cross check to these 2 things
1) if an application(ie Form) defines the icon location for a button with myapp/<iconname>, then the icon is looked up in the directory forms/myapp.
2) set the imageBase parameter to codebase in formsweb.cfg
Setting the imageBase parameter to codebase enables Oracle Forms to search the forms/java directory for the icon files.
the below link would be helpful,about how to installs icons on Forms