Adsen FavIcon is a simple favion freeware creator that lets people make a favicon ico for their website, which shows up in IE's favorites. It can use either bmp or jpg files, and will convert them to ico format using the size and color quality you choose. Not only can you create fav icons, but it can also be used for creating icons for programs.
Adsen FavIcon comes with notes on what settings to use for making fav icons and how to install them.

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