I have attempted to re-save the png file as (file name).ico in Photoshop, though it appears as though I cannot use this as an icon.
The error I am getting when I select this new .ico file is "The file (file name) contains no icons"
Edit: I've downloaded a program called IrfanView, which saves images as a .ico file. It works, though the background is a solid black. I would like to know if there is a way I am able to use a transparent background.
I've just figured out a more effective way to do this. Because IrfanView is crappy, I've searched for a way that I might be able to save a file as a .ico in Photoshop. I've found a simple plug in, and it enables the support of icon files when you go to save an image. Since Photoshop supports transparent background images, I am able to have circular icons.