How to Create an Icon From an Image
An icon is just a picture that is used to identify a file. The difference between an icon and a picture that you take with a digital camera is that an icon uses a different file format. Where most files use a .jpg format, an icon uses a format known as .ico. You can use any photo or other image as an icon once you convert the format to .ico, and adjust it to the correct size.
Instructions
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Open your file in your chosen software.
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Crop your image so that it is a perfect square. Since icons are perfectly square, if your image is not also square, it will distort when you turn it into an icon.
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Re-size your image to the correct size. Most icons are 32 pixels by 32 pixels.
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Save your icon with the .ico extension.
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Tips & Warnings
Some photo manipulation software requires an additional plug-in to support the .ico file. Check with the manufacturer of your software for available plug-ins.