Yay, The ability to add favicons to the browser address bar was a welcome addition to the google sites arsenal. This update which was implemented a few weeks ago gives your google site a more proffesional overall look and ties in with your exisiting brand. A favicon icon is the little logo you see in the top and tabs of your internet browser.
To implement the favicon check out the video tutorial at the KC Cloud Solutions Google Sites Help Center
Some tools that are useful for generating favicon images are:
Gives you the ability to generate scrolling text effects - thanks to sandeep from www.gbpec.in for posting this reference in the discussion group
Gives you the ability to download the favicon.ico and gives you a preview of what the icon will look like before you download it.