Google reader just got colorful and trust me it has also got very distracting for many inlcuding me. In order to enable the favicons to be displayed for each of the sites you have subscribed in google readers go to your settings page and select Show favicons for subscriptions and that it.
I do like the feature because you can visualize the site bu just seeing those cool icons but on other hand it is distracting me to look into icons more often ( not sure if I will go blind to that too in sometime ). Here is my poll to you? Did you enable Favicons Support for Google Reader ?