Be sure that your version of file icicles-cmd2.el
is dated after 2013-12-10. I fixed a bug wrt \N
replacements on that date.
Other suggestions:
Proceed slowly, rather than immediately jumping into complex replacements etc. Icicles search and replacement are different from what you might be used to or expect.
Check the current values of all of the user options that affect Icicles search and replacement.