favicon.ico is a file that one puts in a website to make the little picture you are seeing next to the URL in the address bar of your browser.
- The easiest way to make a favicon.ico file is at http://www.chami.com/html-kit/services/favicon/
- The FireFox plugin FavIcon Picker is a cool tool to use these, and various icons from galleries, to make a concise set of bookmarks.