Sounds good - the easiest route would be to just place the ICO file in the root of DNN (two levels up from ~/Portals/0).
There are two ICO files you need to update at root if you don't want to display the DNN logo when you open PDF or files within your site from a browser; look at the root for files "favicon.ico" and "DNN.ico" overwrite them with your favicon logo with those exact names.
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