Sib Icon Editor is a very nice application with which you can create icons, and it has all the tools needed for creating and editing icons, images and managing icon libraries. It’s a very easy-to-use application for those who want to create simple and light icons and is powerful enough for the professional graphic designer who needs to create original icon and small images and manage extensive icon libraries.
It can support icons, toolbars, logos and other graphics of any size, color depth or aspect ratio. 16 and 256-colour images are also supported. But if you create icons in 32-bit graphics, you get alpha-channel support for creating images with no edge distortion. Alpha-channel is used to add shadow effects in icons which looks very nice when used on Windows XP and Vista.