This has to be the best favicon generator I've found. There may be better, but not that I've used.
Ways that this one is awesome:
- Proper Transparency
- 32x32 Pixels (higher quality)
- Accepts PNG Files (best way, IMO, since my stuff comes right from Fireworks)
- Super Easy to Use
Really what more do you need? I've actually redone my favicon (though I have to do it again b/c I'm not happy) and 3 other sites that I manage. They all look awesome.
"What is a favicon?" you say? You can read about them at Wikipedia.
EDIT: OK, I think I like this cone better.