If you have a later PhotoShope that comes with ImageReady-- like say PS 6 or 7+-- I would recommend using Save for Web under the File Menu. That flips you right into ImageReady which has an excellent algorithm to make very readable jpegs or gifs. Yes, it works with both. I usually use Jpegs as they are non-dithered and generally smaller than gifs unless the picture you're working with has fewer than 4 colors. ImageReady's Medium to High setting makes quite small jpeg's with excellent quality. The setting will vary depending on the amount of detail in your picture. I mention this because you mention working with PhotoShop. I used to go out of my way to purchase fancy jpeg generators but with the later ImageReady, this is no longer necessary. You can see how big the finished product is and adjust it before saving. Plus, ImageReady strips jpegs of unnecessary data that make a big difference in how many Mbs your using but don't effect the quality of the picture-- like previews/thumbnails. I never use pngs, much too weighty a form. Emily