In some ways I think the logo is a little intricate, but when compared against the IE or Google favicon it's pretty simple.
I created it with a free online tool but it lost transparency so I've since installed a plugin for Photoshop CS2 to create the ICO format. Initially I was testing the ico in IE and they all looked pretty awful, some slight deformation, loss of shape/detail. Then I opened the ico and found that in FF it actually looks much better - why would the ico look different between browsers on the same machine?!
Overall the quality is still a little lame, as mentioned compared to other favicons out there. Is it likely that there's another photoshop setting i should use or would it be a limitation of the Telegraphic photoshop plugin?
I've been creating a 64x64 psd image then resizing down to 16x16 ico.