Transparent Favicons

So I discovered the other day that it is possible to make transparent favicons. Favicons are a good idea. Transparent favicons are just awesome.

Here's a screenshot of my site in a Firefox tab with my original favicon:

Old Favicon

As you can see, it looks fine in the location bar, but you can see the white square of the favicon on the tabs (especially when a tab is not selected). Here's the new version:

New Favicon

Much better! Want to know how to do it?

Go here. I was going to try to explain it, but his step-by-step is really the best way to go about it. Let's see what you can come up with!