1) open a favorite image that you'd like to turn into a favicon to appear in your browser's location bar
2) click Image->Mode->RGB
3) using the erase tool, erase any areas of the graphic that you'd like to be transparent
4) using Image->Scale, resize the image to 32x32, the proper size for a favicon
5) first save the file as a GIF
- Gimp will popup a dialog that says "GIF can only handle grayscale or indexed images"
6) select * Convert to Indexed using default settings
7) click Export
8) save a copy as
1 bpp, 1 bit alpha, 2-slot palette
4 bpp, 1 bit alpha, 16-slot palette
8 bpp, 1 bit alpha, 256-slot palette
32 bpp, 8 bit alpha, no palette
Choose 4bpp. However, I have seen with some images that 8bpp needs to be used.
9) upload to your website and enjoy!