How to Make an icon with Paint Windows 7

1.  Open an Image using Paint.

2.  Resize the image to Pixels;  Horizontal: 32 and Vertical: 32

3.  Under Image Properties :

                           Sets Units as Pixels, 

                           Sets Width: 32 , Height: 32

4.Press [Ctrl]S to save the file with these specifications:

                       File name MUST have a .ICO at the end

                       The "file type" MUST say "24 Bit Bitmap".

                       Paint will save it as an ".ico" file

Now your Icon is Done ^^

Source: http://www.wikihow.com/Create-an-Icon-in-Paint