IconEdit2 is an award-winning easy-to-use and powerful icon editor. It supports ICO, ICL, NIL, EXE, DLL, GIF, TIFF, BMP and JPEG files for open/extract/convert to icons. IconEdit2 icon editor can save your work as TrueColor, 256-color, or 16-color 48x48, 32x32 or 16x16 ICO, as well as GIF, TIFF, BMP or JPEG files. Allows you to create buddy icons for AOL Instant Messenger™. You can paint, undo/redo, search for icons in your files and create new icons instantly by capturing screen areas. Contains a library of sample icons.
IconEdit2 icon editor is shareware ($20). You can download and try it before you buy. Registration includes FREE version upgrades and support.