is simply a graphics file - usually saved as a .gif
You can create a logo in any application that allows you to create files in that format. FrontPage 2003 isn't going to be any good, but Photoshop certainly is. Another excellent program for this kind of thing is PaintShop Pro, or there's Ulead PhotoImpact, which I use almost daily. PhotoImpact hasn't had the publicity it deserves - it's ideal for photo-manipulation and graphics work, it has hundreds of button sets, and just about everything you could need for web graphics.
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