| File Formats
If you are working with a photo, use a compression format
meant for photos (JPEG). If you're working with an
illustration or with text as an image, use one meant for
drawings (GIF). Saving an image with an inappropriate format
can double or triple the image's file size, not to mention causing
unpleasant color shifts and other effects.
There is no such thing as one multi-purpose image format, despite what you might have heard. Rather than religiously using one image format instead of another, let each image drive your solutions. The quality of your results -- both in aesthetics and in file size -- will be much more predictable.
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GIF vs. JPEG
Webmonkey Q&A on when to use GIF and JPEG formats.
Yale Style Manual: Graphics File Formats
Describes graphics formats and compression methods and covers basic optimization tips.

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