| Am I missing something or what. |
Obviously, yes........... but what you're missing is impossible to say, until you provide details. The image you're trying to convert.... what's the format? What size is it? Did you use anti-aliasing? What method are you using in IconDeveloper? The more info your provide, the easier it will be to help you. 
| Just a small red button png format |
| my image which is saved as bmp |
err... you need to save as a transparent PNG.
This is probably where it's going south on you.
Constrain proportion would be for dealing with an irregular sized image. If the iamage was 100x50, and you didn't check the Constrain proportions box, it would distorted the image, because ico files are always square. Resample is the filtering used to resize the images for the different sizes. You can leave it at default.
[Message Edited]
Welcome Guest! Please take the time to register with us.
- Richer content, access to many features that are disabled for guests like commenting and posting on the forums.
- Access to a great community, with a massive database of many, many areas of interest.
- Access to contests & subscription offers like exclusive emails.
- It's simple, and FREE!