There are also aspects of compression with color graphics. Most of us recommend TIFF or PNG files. However, JPeg with it's lossy compression might be a useful choice at times. The basic concept (not necessarily exact) behind JPeg is to retain good quality of the intensity and give up the resolution in the colors. The reason this is useful is that the eye is not sensitive to the color quality to the extent that it is for intensity. So you might want to try the JPeg and see if it is acceptable and allows you to squeeze just a bit more space out of the file.
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