IconDeveloper

Change the look of your Windows create your own eye-catching icons with IconDeveloper.
Blending your creativity with this software lets you to create eye-catching Window icons in just a snap. With this tool you need not create graphics but you can simply import images from existing graphics package like Photoshop, MS Paint, CorelDraw and convert them into eye catching icons. As a result you can develop icons easily and quickly. With the help of this tool you can even change the color of the icons, do batch conversions and change the size of the icons using a variety of scales to achieve the highest possible quality. This tool has also incorporated itself into the Window shell so that the user can simply right click on a graphic image and convert it into a Window icon. This efficient tool can edit both .ICO files and .ICL files and supports any size icon you choose to create.
This absolutely free to use version allows you to create standard Windows icons, Windows XP icons, and shell integration.

IconDeveloper is a program that makes it a snap to create your own icons for Windows. Most icon editors come with their own graphics editor. IconDeveloper doesn't. Instead, it assumes that most people who want to create icons are either going to create them using an existing graphics package like Photoshop, MS Paint, CorelDraw, or they take existing images (.BMP, .PNG, .JPG, etc.) and turn those into icons.
So instead of putting effort into a bitmap editor, IconDeveloper focuses itself on making it really, really easy to turn existing images into Windows icons and allowing for common modification of those icons (resizing, color changing, etc.). The result is a program that makes icons extremely fast, extremely well and extremely easily.
The free version allows for the creation of standard Windows icons, Windows XP icons, and shell integration.
An enhanced version is also available for $19.95, which adds additional features such as creating and editing any sized icons at any resolution up to 256x256, changing the hue/gamma/color of the icons, batch convert and batch colorize entire folders of icons. The enhanced version is part of Object Desktop, Stardock's premiere suite of desktop enhancement programs that let you customize Windows to look, feel and function how you want it to. Object Desktop is only $49.95 and includes IconDeveloper, WindowBlinds, DesktopX, IconPackager, ObjectBar, WindowFX, SkinStudio and much more! For more information visit: http://www.stardock.com/products/icondeveloper/.