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Sib Icon Editor ($30, 30-day free trial) is a neat, all-in-one icon editor package that extracts, edits, and saves icons in a no-nonsense interface. Sib Icon Editor is on version 5, and by now they've made all the above features robust and working correctly. The icon editor is especially nice, as it includes the requisite paint, paintbucket, color picker, and other useful image editing features.
One feature in Sib Icon Editor that few other icon editors have is the ability to search your entire system and extract icons from everything, showing you its work as it goes. This takes awhile, so the best thing to do is let it run until some intriguing icons pop up, and then hit Stop. It'll take a second for the Stop to register, but it'll happen. This is a one-click feature, and searches any and all file types looking for icons, including EXE and DLL files. The search can't be resumed after stopping, and must be started over in that case.
Vendor SibCode's Website is contradictory as to whether Sib Icon Editor is free. The Sib Icon Editor main site says it's free, and the press release section touts the new free status of the app. PC World's attempts to reach the vendor about this confusing information have not met with success. The proof is in the pudding, though: the current version 5.0 downloadable from the site is an evaluation version that works for only 30 days (though it's hard to read the red-on-blue text in the app that says so). The full version costs $30. Also, there's an undocumented "nag" red text that pops up over your work when you're editing that says "Please Register."
If you can deal with these annoyances, you may like Sib Icon Editor. That said, you might want to check out the free Greenfish Icon Editor Pro before commiting to Sib.
Note: Sib Icon Editor is a 30-day trial with an occasional nag graphic. The full version costs $30.