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Here's an earlier thread on the subject, with some more links and info for you:
I guess I was mistaken about the photoshop post. Do you think it is possible to take a .psd file save it as a .gif and then use Icon Forge to save it as a .ico? Will I lose some resolution?
But if you take a regular psd file, save it as a gif, and then convert it to ico, you should probably prepare yourself for a lot of trial and error...