Microsoft Paint (well, free after you buy windoze)
lol, go into paint, and start off with a 32x32 image.
strut your stuff, and draw your icon.
save the icon as a bitmap, like you would save a normal image.
rename the extension of the bitmap you made from "whatever.bmp" to "whatever.ico"
i dont see the point in all of these tools that are out there, i could whip a tool up in dbp easily within an hour (just make a painting program, but instead of saving stuff as bmp's save em as ico's)
-also works for cursors, just use ".cur"
now, if you wish for an animated icon/cursor, now that would be a different matter entirely
Sticking feathers up your butt doesn't make you a chicken.