One of the many features in IE 5 is the ability to have your icon appear beside the link to your site when added to favorites. I will show you how to do it.
First you need to create an icon, you must use an Icon Editor to create icons because Adobe Photoshop has no ability to export images to icon files. There are many icon editors on the net, but I use "Bitmap to Icon 3.1", you can download it at

Now I teach you how to use the "Bitmap to Icon 3.1".
First you need to create a 32x32 or 16x16 pixels image. But if you create in 32x32 pixels, you will need to convert the image size to 16x16 pixels.

Draw whatever you want on the image, then go to
File>Save a copy, make sure you save the file in .BMP .JPG or .GIF format only.
open the "Bitmap to Icon" software, and just follow the me if you need help.
There are two ways to stick your logo into people's favorites.

1) The first method is to name your Icon file "favicon.ico" and put it in the
root of your domain.

For Example:

2) Or for those who have no access to the root of their domain (free hosting or user hosting on most of ISP's).

Use the following code in the <head> tag of the page:

<LINK REL="SHORTCUT ICON" href="/???????/foo.ico">

??????? = your username

For example I am using geocities: (My address)
<LINK REL="SHORTCUT ICON" href="/dhouseng/foo.icon

You icon name is still favicon.icon although you see foo.icon up there...