I am trying to create a desktop icon for the executable and the setup. I created a small icon and ran it through Irfanview to convert it to a .ico file. It was created with 16 bit color and the size is 32 x 32. I renamed the icons to user and setup and I put the images in the game folder, but when I try to save the game, I keep getting error messages that I can't rename a bmp file to an icon file or the color depth is incorrect. What am I doing wrong?
Which version of AGS are you using? Support for icons with arbitrary resolution and colour depth is only added since V2.72. If you're still using V2.71 or earlier you can only use 32x32 16-colour (not 16-bit colour) icons (unless you use hacking utilities like Resource Hacker to hack the icons into the executables).
That's my problem then. I am using V2.71.