Update: 01-08-2014. This set of articles are one of the oldest on my website written back in 2000 but the information is still relevant and useful. Given the speed of the modern Internet there is not much talk about image compression but it's amazing how many times the subject still comes up. Ever wonder why pictures on Facebook or the Ipad are not as good as you remember? Background picture compression. What bothers me is not that the pictures are compressed, but rather both services hide the fact. Hopefully this is a trend that will someday disappear. Until then I hope the following will give you an idea of how graphics and compression work.
If you do not currently have a good understanding of computer graphics and file formats I would highly suggest reading the articles in order. Most articles require concepts from the previous articles. At the end of the articles are various topics I have listed under the heading "support files". In the course of reading the articles I have referenced these topics as needed for people who may need further background information. These articles may be read in any order and I would suggest browsing the titles for any topic you may wish to refresh.
Note: If you are trying to understand how file formats and compression work, do be careful of Photoshop. Photoshop does not let you count or modify the number of unique colors in an image which is a major part of file compression. Also, some file options are not available in Photoshop. I would recommend programs like IrfanView, Paint Shop Pro, or any program that has both a "count color" tool and a "color depth tool". If all you have is Photoshop, use the "Save for Web" option which will give you more options saving GIF and JPEG files.
1. Overview   2. Bitmap and Vector Graphics       Bitmap Images       Vector Images       Resolution and Scaling   3. Bitmaps In Detail       The BMP format In Detail       Bitmaps and the RLE Compression   4. Bits and the Number of Colors       Bits and Binary Numbers       The Number of Colors       Bit Depth and the Number of Colors       Other Useful Color Information   5. Reducing the Number of Colors       How many colors do you need?      Niagara Falls Image            A Slight reduction in color            24 bit to 8 bit            BMP and GIF Formats            Color reduction from 256 to 16 colors            Images with no single primary color      Balloon and Tower Images            Images with No Single Primary Color            Color Banding            Dither      Random Examples   |
6. The GIF File Format       Index Color Method       Transparency       Animation       Interlaced and Non-Interlaced       A Final Word       GIF Reference Article   7. File compression and Winzip       File compression and Winzip       LZW Compression   8. File compression and Data Loss       "Lossy" and "Lossless" Compression       Color Reduction       Quality Reduction   9. The JPEG File Format       About      Compression Method            Outline            Text Description            Details            Important Points      Examples and Comments   10. The TIFF File Format       About   |