Greenfish Icon Editor Pro 2.1

Greenfish Icon Editor Pro is a powerful icon, cursor, animation and icon library editor. Layer support with advanced selection handling makes it a really professional and unique freeware tool for designing small pixelgraphic images. GFIE offers high-quality filters like Bevel, Drop Shadow and Glow; supports editing animated cursors and managing icon libraries.
It's lightweight (< 1.8 MB unzipped) and also has a portable version - just unpack it to your USB drive and use it anywhere. A clean, customizable, multilanguage user interface makes it really easy to learn and use.