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+2  A: 

They reference two icon files:

This one is for IE that only understands ICO format.

<link rel="shortcut icon" href="http://img1.wolai.com/img/favicon.ico" />

This one is for good browsers. This is an animated GIF.

<link rel="icon" href="http://img1.wolai.com/img/favicon.gif" type="image/gif" />
Developer Art
"This one is for good browsers". A little biased are we? :-)
David Stratton
A: 

It looks like their favicon is an animated gif. It didn't seem to be animating in Google Chrome (4.x stream), but it works in Firefox.

Matthew Ruston