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Appears to be based on this code: http://snipplr.com/view/29188/

EDIT: actually, it might or might not be based on it, but that code shows how to implement dynamic favicons, at least for Google Chrome.

Another edit: MikeCapone observed in another comment that it only goes up to "30+" so they might just be using 30 static images. But if so, why that wouldn't work in browsers other than Chrome 6+ and Firefox 2+ is beyond me.

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Just guessing, but it's probably because most browsers heavily cache the favicon image.

Surely it would be cached based on the image URL though, not based on the page URL, and different images could use different URLs. I still don't see how this would pose a problem.

Actually, I was just wondering whether this means that Chrome is no longer going to do so.

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