Found the fix on the XBMC forum:
Since some people are still having trouble with the captcha fix I posted last night, I am posting a link to the default.py file that I am personally using and that is having no issues with any captcha streams. Let me know if anyone has any issues with it or if you are having success with it please post as well.http://www.mediafire.com/?tjtbt44a33y34jt
this is verified as working for ATV2 and should work with all XBMC installs.
default.py file locations:
OSX: /Users/yourusername/Library/Application Support/XBMC/addons/plugin.video.icefilms
Windows 7: C:\Users\XXXXXXX\AppData\Roaming\XBMC\addons\plugi n.video.icefilms (Where XXX is the username of the windows user)
Note: Before the new default.py file can be used by icefilms, you must first replace the old one and then either restart XBMC or at least back out all the way from icefilms to the 'video add-ons' selection screen.