There are many places where I can't follow you.
You say you have followed my guide, but it seems you haven't read it with care.
you can't install Icaros on a FAT-formatted partition!
You may, indeed, create a little FAT partition on the pendrive just to have a place to transfer files between AROS and the rest of the world. But AROS must not go in the FAT partition, it must go in the BLANK space you should have left out on the pendrive, after cleaning it all with diskpart.
why have you created a fat partition and set it "active"? you should NOT do that. You should just create that little partition above, and format it as FAT(16). But then, just forget it.
In a nutshell:
1. clean your pendrive with windows' diskpart command as explained in the guide
2. create a LITTLE FAT partition IF YOU WANT, it's not necessary, just a commodity to transfer files. Leave the rest BLANK, UNPARTITIONED
3. please notice if you're goin' to use the Live! version of Icaros, you'll need 1,8 GB of space for AROS only!!! So be aware of this when you'll decide the size of the fat partition
4. boot into AROS using the DVD
5. launch installaros and select USE free space.
6. Do NOT create the Work: partition, use the DU0: system partition ONLY for everything!
7. reboot when prompted
8. launch installaros again and select USE EXISTING AROS PARTITIONS (do not create Work:, etcetera)
9. choose to install everything in the DU0: partition
10. wait... wait... wait... wait...
11. reboot using your USB pendrive after disconnecting the DVD drive and set the BIOS to boot from your pendrive.
12. Enjoy. But next time read instructions more carefully.