if you want Microsoft's ImageEdit try here:
http://msdn.microsoft.com/vstudio/express/beginner/default.aspx?mg_id=10122 then this link telling you how to create the icons might help:
http://www.codeproject.com/useritems/HowToIcon.asp

Others available as stand alone apps:
Microangello Studio can be found at http://www.impactsoft.com.

IconForge, http://www.cursorarts.com/ca_if.html

http://www.davecentral.com/iconed.html

iconCraft - http://www.iconempire.com/info/vista-icons.htm

PixilShop - http://www.digitope.com/pixelshop/library/about_icons.aspx

Icon Constructor - advanced icon maker v2.2 supports Windows XP icons in 32-bit color depth with an alpha channel
http://www.filebuzz.com/fileinfo/8443/Icon_Constructor___advanced_icon_maker.html

Easy Icon Maker - http://www.qweas.com/download/graphics/icon_tools/easy_icon_maker.htm

Photoshop will create them too.