Since I just went through creating mine, I thought I would provide you a simple process for creating yours.
First, go download png2ico, a freeware program for transforming .png files into an .ico file. Unzip it in a convenient location. It’s a command line program, but buck up and learn something (if that’s new for you)!
Second, create some nice .png graphics. Create 2 of them. The first should be 16×16 pixels and the second, 32×32. Mmmmm…those look nice. For ease of use and explanation, slap ‘em in the png2ico directory (located wherever you unzipped it in the latter part of step 1).
Third, open up a command line. In Windows (which is what I’m using), you can hold your Windows key and then press ‘R’. That will bring up a Run dialog box, where you can type either “cmd” or “command”, depending upon your version of Windows.
Fourth, from the command line, browse to your png2ico directory (HINT: if you don’t know how to browse in MS-DOS, you can Google “MS-DOS cd command”). Then, run the png2ico program. The command will look something like this:
> png2ico favicon.ico logo16×16.png logo32×32.png
Obviously, substitute logo16×16.png and logo32×32.png with whatever you called them. Your new favicon.ico file will now be in the png2ico directory.
Fifth, upload the favicon.ico file to the root directory of your site.
Sixth, place the following code somewhere in the <head> section of all of your (x)HTML documents:
<link rel=”shortcut icon” type=”image/ico” href=”/favicon.ico” />
Seventh, lay back and imagine the “Oooohs” and “Aahhhhs” people will utter as they come to your site. Proceed to revel in your genius.
Thanks to Cody Lindley for the tip on using png2ico.