File Buddy’s Get Info dialog creates custom icons the same way as the finder. Actually, I think it does a better job than Finder, both when copying icons from one file to another, as well as when creating them from pictures pasted in (it dithers, creates a better mask, and offers scaling options when the picture is not square). Try a few and see. Icons are copied and pasted the same way as in Finder's Get Info.
There is a menu that pops up when you click and hold on the icon in the Get Info dialog, which I refer to as the Icon Edit menu. File Buddy can create custom icons without pasting a picture in any of 4 ways using commands in the Icon Edit popup menu.
1. You can use a blank icon by choosing the Paste Blank Icon command from the popup menu you'll see if you click the icon and continue to hold down the mouse button.
2. You can use only the small icon for an item with the Use Small Icon item. Nice for saving space on the desktop.
3. The Same As… command lets you copy the icon from an existing item you select onto the item in the Get Info dialog.
4. If the item dropped is a folder, there is a Make Folder Icon… item you can use to create a custom folder icon (small file icon centered inside a standard folder icon) using a file of your choice.
Note:
Finder is real stubborn about acknowledging that anyone else has created a custom icon. If you create a custom icon for a file or folder that didn't have one previously, you can get the finder to use it by just closing and reopening the folder it resides in, or by clearing the Inited flag before saving your changes. File Buddy clears this automatically when you paste an icon for a file that didn't have one before so it will show up. However, if the file already has a custom icon, and you replace it using File Buddy, Finder will doggedly use the old icon until you restart the finder or your Mac. File Buddy offers you the option of restarting the finder if you delete or change a custom icon (unless you have file sharing on, as that can cause problems).
