I made them with Photoshop a while back but you can just as easily do something on Paint.
BigFooty Forum
Stromageddon
Stromageddon
And by 'just as easily' I mean almost as easily. 
OrdinaryJoel
I've done badges before using Paint, but adding text to it is hard as it goes all blurry n' shit due to the small pixels. How da hell do you make the text as clear as yours?
Stromageddon
I'm not sure. Mine just does that lol. I made an Adelaide one a while ago if interested. It's on the end. http://i43.tinypic.com/2euu7ev.png