So the old school way and what I use to do was to add the basic code in my Header(header.php) as:

<link rel=”icon” href=”http://favicon.ico” type=”image/x-icon” />
<link rel=”shortcut icon” href=”http://favicon.ico” type=”image/x-icon” />

However, recently I found out that my book cover for “Master Your Mind” wasn’t displaying on IE8 browser and neither was my favicon (icon next to your address bar for those who are wondering).  I’m a photobucket fanatic wit my photos displayed on the internet, but when I found out that my book cover wasn’t displaying I tried flickr.  Then, low and behold…It worked!!! That situation just might have converted me into a flickr fan. Lets get back to the subject about the favicon display.

I’m a firefox fan!  Which my favicon displayed just find, however when I found out today that it wasn’t displaying on IE8 I had to investigate.  Then I finally found the code that fixed! YES! It made my day!
So here it is family, friends, folks and fans!

<meta http-equiv=”X-UA-Compatible” content=”IE=EmulateIE7″>
<link rel=”icon” href=”favicon.Ico” type=”image/x-icon” />
<link rel=”shortcut icon” href=”favicon.Ico” type=”image/x-icon” />

Just display it above the <head> code
Make sure you change your “favicon.ico” in the main body which looks something like this.

<link rel=”shortcut icon” href=”<?php bloginfo(‘template_url’); ?>/http://favicon.ico” type=”image/x-icon” />

or something similar like this, depending on your Header (header.php)

<link rel=”shortcut icon” href=”<?php if (get_option(‘favicon’)):?><?php echo get_option(‘favicon’);?><? else :? ><?php bloginfo(‘stylesheet_directory’); ?>/favicon.ico<? endif;?>” type=”image/x-icon” />

Please comment if this helps ;-]