coFX is a free program which you can use to create icons, edit (change) them, extract them from program files, replace icons that are embedded inside program files and create icon libraries. It not only supports the Windows icon file format, but is also able to convert from that format to and from the Macintosh icon file format. If you have an image file (picture) that you particularly like, you can also get the program to convert it into an icon. Alternatively, it can also do the reverse: changing an icon file into a image. Other features include batch processing, support for icon resolutions up to 256x256, support for 2, 16, 256 colour icons as well as "True Color" icons, a variety of painting tools for you to design your icon (even blur/sharpen, brighten/darken), etc. Also available on the site is AniFX, a cursor editor that lets you create cursors, including animated cursors for Windows. It has the same feature set as IcoFX, except that it's for cursors.
icoFX
