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There are 5 basic file types you can use for your photo gifts: .jpg, .bmp, .tif, .png, and .gif.
JPEG (can be .jpg or .jpeg)- JPEG's support over 16 million colors, but can "distort" the image to compress the file size. The amount distortion is directly related to the 'quality' setting the image is saved with. We also recommend that you use the least amount of jpeg compression possible. (This is a setting on cameras that is sometimes called "quality" or "compression".) While high resolution and low compression will increase transfer times, they will produce the best results.
BMP (MS Windows Bitmap Format) - BMP is the native bitmap file format of the Microsoft Windows environment. For example, if you create a document using Paint, chances are it will save as a .bmp. BMP files are usually not compressed, and so are large for their image quality.
TIFF (Tag Image File Format, can be .tif or .tiff) - A bitmap graphics file format that was developed by Aldus and Microsoft for storing scanned images. It can be used with black and white, gray scale, 8-bit color, and 24-bit color images, and transfers well between different platforms. TIFF images can be compressed, although loss does occur.
PNG - Portable Network Graphics format that supports a completely loss-less compression.
GIF – Graphic Interchange Format files work best with simple line art, logos and icons.
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