Earlier today I added a new Favicon. I created one for Dan's Shorts too, but he's yet to add the necessary code to make his show up without the user jumping through hoops, so you may not see his yet. I like to call 'em fav-eye-cons because they're close-ups of our pixel people's eyes. :-) I'm just cheesy like that y'know.
I used Icon Forge to create them by importing GIF images. I have 4 uses left of the trial, and I'm pretty sure I'll buy it since it was just so easy to use.