Robin Good: If you are looking for a simple and free tool that allows you to create a favicon in zero-time with your favorite brand or acronym letters, give a look to OnlineIconMaker.
This free, ad-supported web-based service alows you to launch a free web app that allows you to easily customize your favicon, type your text in it, and select the colors and shadows you want to use.
The final file can be immediately downloaded as a .PNG or .ICO file. By downloading either version you get a .zip file containing your icon in five different resolutions: 16, 32, 64, 128 and 200 pixels.
Find out more: http://www.onlineiconmaker.com/
Online app: http://www.onlineiconmaker.com/application
Via Robin Good