Can’t believe it, but yes you need a plugin to save a favicon in Photoshop. The good news is that it’s free and works with all versions of Photoshop including CS5, Photoshop Elements, and Paint Shop Pro version 9 or later.
Just go to: www.telegraphics.com.au/sw/icoformat.en.html and download the right package. Then just copy the file of the package into

C:\Program Files\Adobe\Adobe Photoshop CS%version%
\Plug-Ins\File Formats

restart Photoshop and there you go. Downsize your logo to 16x16px, save it as favicon.ico and upload it in the root of your website.
Most browser detect automatically that there is a favicon in the root but to be sure add

<link rel="Shortcut Icon" href="favicon.ico"
type="image/x-icon" />

in the head of the website (before head tag ends).

So when doing a recent wordpress template i encountered one problem. The front page was meant to be a static page but the latest post function was still supposed to work on another link (Blog). Finding out the link to access the latest posts was quick. You can always find it over:

yoursite.com/?p=all

But now i wanted the mark up to work. Usually wordpress marks current items with the class “current_page_item”. Since this was a custom link, i had to do this mark up myself. I was searching quite some time for this. At the end i was able to solve it like this:

<li class="blog <?php if ( preg_match("/.*p=all.*/i",
$_SERVER['QUERY_STRING']) || is_single() )
{ ?>current_page_item<?php } ?>"><a href="?p=all"
title="<?php _e('title', 'default');
?>"><?php _e('Blog', 'default'); ?></a></li>

I tried all kinds of functions that wordpress is offering. is_home, is_page, is_singular etc. But only this did the final trick since these latest posts are not a page neither just one post. Now it adds the class “current_page_item” to this link when a user is on it. Solved.