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Greenfish Icon Editor Pro is a powerful freeware icon, cursor, animation and icon library editor. Layer support with advanced selection handling makes it a really professional and unique freeware tool for designing small pixelgraphic images. GFIE offers high-quality filters like Bevel, Drop Shadow and Glow; supports editing animated cursors and managing icon libraries. It's lightweight (< 2 MB unzipped) and also has a portable version - just unpack it to your USB drive and use it anywhere. A clean, customizable, multilanguage user interface makes it really easy to learn and use.

Greenfish Icon Editor Pro (GFIE Pro) is a powerful open source image editor, especially suitable for creating icons, cursors, animations and icon libraries.

Open source (GPL v3), yet has a clean and intuitive user interface
Professional features: layers and high-quality filters
Supports editing animated cursors and managing icon libraries
Not just for icons: GFIE is also a general purpose image editor
Has a portable version - about 24 MB unzipped, just unpack it to your USB drive and use it anywhere