>>>Is there an easy way to transform bmp's into icon files?
>>AX Icons version 4.5 will save a BMP as a ICO and the reverse.
>>Very nice program and it's only $14.00.
>>http://www.axialis.com
>
>What I can see it is $39.95

Try Icon-Sushi, it's freeware. Converts correct (16x16 by 256Color) size .bmp to .ico
http://www.snapfiles.com/get/iconsushi.html