Kageboshi, jpeg is a safe and useful format, as long as you use it properly. It only degrades over multiple saves, because each time more data is thrown away. That just means that you should keep your original/master files (such as your Victoria textures) and to adjust the texture always go back to a fresh copy, not a second or later generation that's been saved in jpeg. When I make a change to an original jpeg, I always save it as a layered Photoshop/PSD file, since I'm sure to want to go back and tweak it more. If you do that with the jpeg saved file, it's gonna get ugly!