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My 2 cents too :-)

GIF is good for solid filled graphics as it ompresses images by grouping colour regions. JPG compresses images by choosing every x pixel and averaging the colours between the surrounding pixel colours. This is the basic gist. I am not entirely sure how PNG does it, but as far as I am aware it compresses the colour values and puts it in an indexed table. It is lossless compression meaning the colours and quality stay the same (or at least extremely close) to the original.

If you are using photographs, I’d recommend jpg on the web. Otherwise png. Png has the added benefit of using 256 shades of transparency so you don’t get the ugly pixels you do when using GIF. The only browser still around not to support it is Internet Explorer 6 and lower. People who still use this should not. It is insecure and way out of date. IE 8 is now out and people who need to use IE6 for custom intranets have been given a step by step guide by Microsoft, who too recommend people to change. Saying that there are always people who are too scared to change over in which case a script in the website can fix the problem of the blue background transparent png files have in IE6.

I don’t think the size difference is a big issue. It is often less than 50kb we are talking about, and I have seen many cases where png files are smaller than it’s counterparts. It depends which program outputed them also. Fireworks from Adobe gives the best compression for web images than any other program – even Photoshop. That is why it is still around. Again, the difference is not noticeable to many visitors.

The point to take is that people are expecting better designs now than in the past due to higher speed internet, and simply the way technology is going. In my opinion Gif is no good anymore with PNG around.