I posted more info on favicons here
http://blog.geoffreyemery.com/post/Making-a-Favicon.aspx
Today I have stumbeled onto another great tool.
Stuart Colville has announced a fun little project that he and fellow collaborators Ed Elliot and Cyril Doussin have worked on.
Their Favicon Generator lets you upload an image and then go in and tweak the pixels :)
Although many modern web browsers support favicons saved as GIFs, PNGs or other popular file formats all versions of Internet Explorer still require favicons to be saved as ICO files (a Microsoft icon format). This tool provides an easy way to convert any GIF, PNG or JPEG to ICO which is supported by all modern web browsers. It also enables you to create favicons from scratch via a handy online editor. Additionally the editor lets you manually tweak generated favicons to ensure the best possible result.
The main difference with the tool is that we’ve provided an editor which allows you to tweak the generated icons which is often necessary particularly if you’re creating a favicon from a much larger graphic.