We Have a FavIcon Now
In your Favorites/bookmarks list you've probably seen at least a few links with a little picture next to it. It also appears to the left of the URL in the Address bar. Those little pictures are called Favorites Icons, or FavIcons for short. I added a little one to danandsherree.com.
The FavIcon might not show up right away. If you want to force it, try click-dragging the icon in the address bar and moving it just a little. It'll probably show up. But even if you don't force it, it should show up eventually.