Well I really hope this will turn into a great tutorial. But this can only be accomplished with everyone's help. I am by no means a professional designer. However I know what I like and I like spectacular icons.
For instance lets take a program like Notepad++. Sure it gets great reviews and is highly downloaded on both Cnet and Sourceforge. But when it came time to design there desktop shortcut it seems the really didn't give a bloody potato. The problem is when a group of developers skip on something as simple as that it can really affect people (in a bad way) who enjoy visual stimuli.
Well just a short rant. I'll put all the information I can related to designing a Favicon and will update as I get more.