Click picture for better viewing.
It's actually quite easy to change the blogger image to one that is unique and fits your blog. Here's a step by step tutorial on how to do it!
1. You need an image that ranges from 16 x 16 to 32 x 32 pixels in size. You can create this on Photoshop and then resize the image. When saving it to your hard drive save it as PNG file.
2. Once you have an image, upload it to the internet. You can use Photobucket, Flickr or you can even publish it in a post on your blogger blog!! (You'll need to get the url address once it's been uploaded.)
3. Now you are ready to change the favicon. You will need go into your layout page and click on Edit HTML. Scroll down just a bit (It's pretty close to top) and look for this code:
Once you locate the code you will REPLACE it with this code:
<link href='URL of your image' rel='shortcut icon' type='image/vnd.microsoft.icon'/>
(You will need to add the URL address for your image inside this code where is says, URL of your image, in black)
4. Now you are ready to PREVIEW your page, to see if the favicon has been changed! If it is has successfully changed go ahead and click on save!