How to use Photoshop to create ICO favicons

Download the ICO Format Photoshop Plugin and install it in the Photoshop Plugins folder.

Applications\Adobe Photoshop CS5\Plug-ins\File Formats\ICOFormat.plugin

C:\Program Files\Adobe\Adobe Photoshop CS5 (64 Bit)\Plug-ins\File Formats\ICOFormat64.8bi

 You can use .gif files, but IE won’t show them…only .ICO’s are compatible to most browsers.

http://www.telegraphics.com.au/svn/icoformat/trunk/dist/README.html

http://www.telegraphics.com.au/sw/product/ICOFormat