To create a rather neat, even sophisticated icon

In a Presentations Drawing 

either create an icon 32 pixels square
	or obtain one from an *.ico file directly from disk:
   or by using an icon extractor, of which one is found here:
	 	http://www.softwarechief.com/
  		set it to show maximum file types, then use the navigator pane
  		double-click a filename to see what may be there
	 		(for WPO2000, a useful file is pficon90.dll)
  		then Copy the icon and Paste into Presentations or Save it and
	retrieve it:
	Insert|Graphics|From File...

Have in the same Drawing two icons 16 pixels square, the WP standard.
 One way: in WP:
 right-click a Toolbar|Edit|
 right-click a normal button icon|Customize|
  - if Customize is greyed out, it is not a normal icon -
 [Edit]|[Copy]|[Cancel] out.
 In Presentations: Edit|Paste, Edit|Paste.

Have the 32-pixel and one 16-pixel icons side by side,
with the other 16-pixel icon nearer the page top than the 32-pixel icon.
View|Zoom|[Other]|600%|[OK]
If necessary, scroll to the icons.

See that View|Grid/Guides/Snap|Display Guides is checked.
By dragging the top ruler down, create a guideline exactly at the top of the 16-pixel icon alongside the 32-pixel icon. Repeat to create a guideline at the bottom.
By dragging the side ruler, similarly put guidelines at each side of the upper 16-pixel icon. The square shows the correct icon size.

See that View|Grid/Guides/Snap|Snap to Guides is checked,
and that View|Grid/Guides/Snap|Snap to Grid is not checked.
Move the 32-pixel icon so it overlaps the square and snaps to one corner.
Drag the opposite corner handle so that it snaps to the other. You may find this snap less than decisive; then careful positioning is called for.

Perhaps: Edit|Copy, Edit|Paste to save this stage of the process.
Save the document.

With the new icon Selected: Tools|Resample Bitmap.
This will probably look dreadful. Never mind.

Save the document.

Right-click the icon|Edit
View|Zoom
Check that the icon is 16 x 16.
You can click the <Brush width> button and set the width to 15.
Then choose the Brush and use it as a gauge.
(If you inadvertently paint, Ctrl-Z undoes the damage.)

Format|Object Properties|Fill|[Foreground]|[More]
Make each of RGB: 199
[OK]|[OK]

Choose Brush width: 1
Colour in all the pixels that you wish to become transparent.
If in doubt, do not colour them - you can always revisit.
Click the hand icon to return to the main screen.
Save the document.

If you have very bad luck, you may find that some existing pixels are 199,199,199.
You would then have to make their colour slightly different.

Apply the icon to a Toolbar Button as explained elsewhere.