Shoutbox

1) the image is a PNG.... WLM supports PNG

2) when you save the image to a format which can't contain 24/32bit colors (like gif), PS will popup a conversion dialog box, choose the appropiate color reduction method.

3) when you save it as an jpg, no colors should be reduced at all.

4) when reducing colors of such an image with such an amount of color gradients, you bound to have some stripes. No way around that.

5) make sure the stripes you (might) see aren't because you're just looking at reduced/magnified version of the image.

6) PS is meant to edit high resolution, high color images and it is the best in that. As such, it sux big time when it comes down to manipulating image formats like that (eg: reducing colors, etc), PaintShopPro is hundred times better for such things which hundreds times more control.