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I converted a 256px ico file to a 256px png so I could edit it in Photoshop. The problem I'm having is once I'm done in Photoshop, I save the png image, go to IcoFX and convert the 256px png to a ico file, but it shrinks the ico image down to 32px. Why is this?

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In Icon->Import image have you specified the correct size? – Paolo Gibellini Nov 28 '13 at 23:20

I am not sure if/how browsers scale large icons, but The W3C suggests the following1:

The format for the image you have chosen must be 16x16 pixels or 32x32 pixels, using either 8-bit or 24-bit colors. The format of the image must be one of PNG (a W3C standard), GIF, or ICO.

1 How to Add a Favicon to your Site (Draft in development).

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