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Gmail Favicon Alerts is a Greasemonkey script that shows you the number of unread messages in the Gmail favicon. Up until now it used to be able to only show if you had less than 10 emails but it has been updated and now it can show more emails. And that's not all, now the favicon remains unchanged even if you're not in your inbox but on your sent messages, trash, etc.. So, no matter what you do with the mail you will still see the number of unread messages in the favicon.

Gmail Favicon Alerts 3 now uses the Greasemonkey API for Gmail, so the developers promise us more speed and reliability, plus compatibility for those who have Gmail accounts hosted on Google Apps for Your Domain.