I know it sounds like a new faction of Transformer, but it is not.
The enigmatic and infallible Wikipedia defines it thusly:
A favicon (short for favorites icon), also known as a website icon, page icon or urlicon, is an icon associated with a particular website or webpage. A web designer can create such icons in several ways and many recent web browsers can then make use of them.
The Favicon is the little icon you see on the open tab of the web page you are currently viewing… The one you are on should look like a navy blue ‘w’. Well, Midsummer Night’s Design now has one… I almost forgot it too. It is easy to overlook such a thing. This is why I am commisioning my Project Manager (love you!) to start a checklist of ‘often overlooked items’ in web design… this one goes to the top! When the list is finished (which it may never be!), I will post it here.
The Favicon is not SO important so as to draw great attention… but something does seem wrong when it is NOT there. Such a little thing lends a lot more credibility to a page.
Just a note to those who wish to tinker with favicons in your design… check out a google search on the subject and use the snippet of code in the head of the page… without it, some browsers will not use the favicon. Also — there are favicon generators on that search. It makes it idiotproof.