You know, now that I think about it, i actually had the same problem. I dontk onw why, but I found the solution that I could not have the cookie and var named the same for example:
$var="blah";
setcookie ("var", $var, time());
that would not work
but if I did this
if (!isset($var2)) {$var="blah";
setcookie ("var2", $var, time());}
on reload, or something.
if (isset($var2)) = $var=$var2;
that could be it, but another thing I just though of, are you echoing testcookie or var, or are you setting something equal to testcookie, just asking