this may come in late but in case other people will see this post, this is a website where you can simply upload your images and it will generate the favicon for you. 
it even has the option to make the favicon animated with text.

http://www.html-kit.com/favicon/

Maybe you can try another one.... There's a site you can edit online for free... It's a beta version... You can try it here... I like this site!!! 

http://www.blibs.com/editor/

Thank you for this link. This has been very helpful! It can make us edit animated pictures like resizing it.  Something we can't do on photoshop!

when i click on the link, it's not working.

Hello Everyone!

I just joined the forum and have learned a lot of things in here.  I'm 26 turning 27 next month.  I'm an amateur designer.  And I learned designing just from online tutorials.  So, don't be too harsh on me. hehehe!
I'm from Jacksonville, FL but will be moving back up north in Minneapolis, MN.

thank you for this tutorial!
i have been making Multiply Themes and dealing with photoshop but my themes never looks so professional not until I tried this. 

just so you know, i appreciate it.