Somehow this error seems to possibly be related to ibays? Does the egroupware contrib use them?
When I access it from an internal (to my lan) client, I get this error in the httpd/error_log file:
[Wed Jul 13 13:31:22 2011] [error] [client x.y.z.a] File does not exist: /home/e-smith/files/ibays/Primary/html/favicon.ico
Oddly, I seem to be able to access the EGW interface from extranal (to our LAN) sources.