IcoFX 2.01

IcoFX is a free icon editor. You can easily create, edit, read and save icons with transparency for Windows XP and Vista. You can convert your favorite images into icons, or icons to images. With the help of many tools and more than 40 effects icon creation is made easy. It offers powerful tools like Brighten, Darken, Blur and Sharpen for retouching your icons in minutes. In the integrated workspace you can easily preview, save, change your icons.  

Licence: Freeware.

Official site

Download: IcoFX 2.01