You may also want to check out Win2x
http://dl.openhandhelds.org/cgi-bin/wiz.cgi?0,0,0,0,7,286
It's an alternate frontend that utilizes desktop shortcuts in an environment similar to Windows and you don't have to bother messing around creating ini files.
Thing is... I downloaded GameIniGen and ran it from the root of the sd card. It created the ini files and in the wiz sd card menu, it shows my icons, but above each I have a "rogue" file, which is similar to the icon, except it has an underscore.
For example:
_pocketsnes.ini
Then here would be the pocketsnes icon.
On my SD card that's how I have them. I also have the icon file within the emu folder. I'm not totally sure if putting the ini on the root of the card will work now that I think about it. INIs go in the game folder that I know already.