THIS APP IS GREAT ! ! !

My Question is How do you Create an Icon? I understand that they are created using "Png" Can I downsize a picture on a website like "PhotoBucket" then save the file as a "png" file - Is that a picture format (like jpeg) ? Should
I use Microsoft Word to create the text or should I copy, paste and clean up
off of the website I wish to use as a shortcut?

Thanks for All of the Help!

Also what do you change the resolution to?