A
favicon (short for "favorites icon"), also known as a
page icon, is an
icon associated with a particular
website or
webpage. A web designer can create such an icon, and many
graphical
web browsers—such as recent versions of
Internet Explorer,
Firefox,
Mozilla,
Opera,
Safari,
iCab,
AOL Explorer, and
Konqueror—can then make use of them. Browsers that support
favicons may display them in the browser's
URL bar, next to the site's name in lists of
bookmarks, and next to the page's title in a
tabbed document interface.
Here is an example as seen in a browser.
Here is are examples as seen in a Bookmark or Favorites list:

Is this a MAJOR issue for a web site? No, it probably isn't?
Is this a major issue for *BRANDING* a business/website?
Yes, it is!
Think of it as the online equivalent of wrapping a customer's
purchase in beautiful and unique tissue paper. It isn't
necessary, but I guarantee that it will be noticed and
remembered, which is what *Branding* is ALL about!!
There is a FREE Online Favicon Generator:
http://tools.dynamicdrive.com/favicon/
Click HERE to see Section
B.
Included in Section B:
Suggestions for how to use Favicons
effectively
Step by Step instructions for how to create
a Favicon, using the FREE Online Favicon Generator
Available assistance from Tink for creating
a Favicon