indeed... and do not put much time in jpg as this is a lossy graphic format and will *beep* up the saved emoticons. Your first choice should be PNG, as this is the format used by Messenger itself, because it supports alpha-transparency and 24bit colors. After that, your second choice should be GIF, third choice BMP and as last (for the dodgy people
) JPG....
PS: your site can only be viewed correctly with MSIE; don't use MSIE-specific code, although widely used, that is not the standard (=not good)