Tip of the moment is: Clic - Fine and simple icon editor
Create 24bit icons transparently - favoriticons - Realtime screen grab - Sizes
16 to 96 - Fine capture mode - Realtime WYSIWYG. Complementary tool for Animated
ArtCard Creations and Snappy PhotoCard Creator. Integrated Help. Multilingual
interface. Download and further info at
http://www.blaiz.net/
Icons can also be done with MS-Paint.
* Launch Paint (Start - Run and write mspaint)
* In Paint Select Image - Attributes
* Change height and Width to 32 x 32 Pixels
* Design your icon.
* Save the icon by adding the ico extension (Test.ico). Please note that
ico extension is not available in the SaveAsType dropdown menu.