If you ever find yourself needing to make a transparent favicon.ico file for your website, you might want to remember this software...
PixelToolbox is sweet. It's free, easy to use and very helpful. It's not just limited to 16x16 pixel favicon files. You can make Windows Icons and Window Cursors. You can also make Color Patterns in four different sizes, 16x16, 32x32, 48x48 and 64x64.
If you were working on a classic RPG, this program could be useful in creating textures and characters. It saves to .ico or .bmp formats and it can export to JPEG, PNG, TARGA and TIFF. (Unfortunately, I didn't see transparancy for PNG, only .ico files.)
Anyway, I made the new Photics.com favicon.ico file with a combination of Fireworks and PixelToolbox.