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Try forward slashes.
Note that the entire icon element is commented out.
I have a similar problem. PNG icons are packaged correctly under an icons folder, but I get these errors from the packager.
Error creating AIR file:
105: ERROR, application.image.16x16;
105: ERROR, application.image.32x32;
Error 105 is due to having space characters in the icon filename. I think this should probably get fixed in the future.