1. Make a Favicon.ico from your Picture
You can make your favicon from a picture at HTML-KIT. Or you can create your own icon online at Favicon.co.uk. It's easy, free, fast and fun!2. Copy the Favicon.ico 
to your root directory.
Copy the file named "favicon.ico" to your root directory. Done.
You don't need to insert any code. Simply transfer the favicon.ico to the root of your site. If in doubt, or you want a different .ico file to display for different pages put the code between the <HEAD> and </HEAD>
<head>
<LINK REL="SHORTCUT ICON" HREF="http://www.mandarindesign.com/favicon.ico">
</head>
Or, we see it done like this.
<link rel="shortcut icon" type="icon/ico" href="/favicon.ico" />
Now bookmark your own site. See your icon? Note: We transferred our icon to www.mandarindesign.com/favicon.ico
All done!More please...
The favicon is that little image next to your book marked website.
You can customize the Icon to be your logo. When visitors book mark your
site they will see your customized logo.
There are programs that convert BMP files to ICO. But, even in your fancy toolbox you probably don't have one. So while you are here let's go ahead and test it at your site first so you can see how it works.
Done? Make sure you save the file with the name favicon.ico. It has to be a valid .ico file
1. Create a favicon.ico (right click and save the image) 2. Put it in your root directory (www.mandarindesign.com/favicon.ico) 3. Now, bookmark your own site You should see the new icon!
You may have to delete any previous bookmarks to your own site to be able to see the icon.