HOW? better quality VB forms icons not just the 16x16 256 colors

please se here:
http://www.vbaccelerator.com/home/VB/Tips/Setting_the_App_Icon_Correctly/article.asp

I dont understand how to do the Resource file and how to use it

it is though explained in the article above
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Creating The Resource

The first thing you need to be able to do is to create a resource file containing the icon you want to use. In this case its simply a matter of creating a resource compiler (.RC) script like this:

// Icons for this application
AAA      ICON    MOVEABLE        PRELOAD         244.ico

The icon, 244.ico is compiled into the resulting resource file with the name AAA. As noted before, Windows finds resources with string names before those with numeric identifiers, so this ensures that the new icon takes precedence over any icon VB tries to create when you compile the application. This resource will now appear in all Explorer windows when you use the application.

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, ie, using rc.exe to compile the resource file:
http://www.vbaccelerator.com/article.asp?id=11996

of course, the icon file has to be created first using a icon editor software (of which you will find surely alot - including free software - on the net)

Please download the icon creating tool.
http://www.aha-soft.com/anytoicon/any2icon.zip

Any to Icon converts BMP, JPEG, GIF, PNG, PCX, PSD, TGA, TIFF, WMF, WBMP, XPM, XBM and CUR formats into Windows icons.

Regards,
M.Raja

In the example it says that to compile a file I should use a line like this one for example:

RC /r /fo TEST32.RES TEST.RC

But where should I run it?

from the command line (dos prompt)

And does the TEST.RC file should be in the same directory of rc.exe? or can I run something like this:
RC /r /fo g:\tt\TEST32.RES g:\tt\TEST.RC


Also is there any software to do this resource files more easy?