Must give props to this brave jedi:
Upload a 16 x 16 pixel PNG and click ‘Faviconify!’ to create a favicon for your website. This favicon maker supports alpha transparency.
Once you create your favicon.ico file, upload it to your root directory of your website and put the following code in your html page in the header:
I was trying to find some free program that worked on a mac to make a favicon (Gimp wisely doesn’t include that piece of junk format). Convert (imagemagick) doesn’t support it either (at least on my webhost), enter Google and Mr. Degraeve. Upload a PNG, receive a zipped .ICO file. Yay. Check out his T-Shirts too, some of them are amusing.