WHAT IS FAVICON (Or Icon in general)It is little thing you see on your Location bar (History/Address bar) when you visit a web site, on left of http://. For example, if you view a site through Internet Explorer, you see an e superimposed over a blank white paper sheet. The icon also shows up when you press CTRL+D to save link in your Favorites folder. I think icon is showed anywhere you store link, whether on Desktop or some other place.
But some web masters prefer to have their own icon. Apart from being an ego issue, it makes web site memorable, and more prominent in list of hundreds of Favorite links (gosh! do you ever visit them?!), or repulsive if you make an ugly icon
COMPATIBILITY
It only works with IE5 or higher versions. Otherwise browsers like Netscape Navigator and Opera do not support such an indulgence. Well, to be frank I haven't checked with current versions (I have IE5, Netscape 4.7 and Opera 5 on my machine). But last time I read, more than 75% surfers are using IE5 or plus these days.
MAKING THE ICON
In following steps, you can create an icon from your web site. This reminds me, a more complex icon can be created by a software like Microsoft Photodraw where you can first enlarge view without distorting pixels, create icon, and then reduce to normal size and then paste it into an icon editor. Look out for a similar editor if you don't have it.
Take care that icon you make/draw/scan/steal has a dimension of 16 x 16 pixels. Preferably, in 8-bit color.
Now go somewhere, where there are lots of downloadable programs, and download "Icon Collector Graphics Editor" from http://www.greatowl.com. I mention this software because somehow I have it on my computer, and don't remember when I installed it. Probably I was trying to make a Favicon for myself but then changed my mind. On second look, I didn't change my mind after all. The icon does show up if you load my web site - http://www.bytesworth.com - and maybe in buffer it doesn't show up.