Blogger has made yet another improvement. I'm not sure exactly when it happened, but I just noticed it today. It's easier than ever to change the favicon, the small icon that appears to the left of the url in most browsers. The default setting is the orange blogger icon (like the one for this blog).
Changing it used to require some work and messing around with the html code. Now all you have to do is use the button in the blogger dashboard. Just click "design" and there's an option to change the favicon:
Just click "edit" and upload any .ico file.