Since the other day a student asked me in class about the use of images in PNG format a timely article on the Creative Use of PNG Transparency in Web Design has been published on by Digital Web.
PNG stands for Portable Network Graphics and has its advantages and disadvantages. PNG image files can have more colours (compared to GIF files which only have 256 colours) are usually smaller than GIF files and PNG allows for transparency. The downside is that Internet Explorer 6 and lower do not support all of PNG’s features.

Jeff Croft has pointed out some creative uses of this file format and explored the implications of using it. Check it out for a more comprehensive over view of the advantages and disadvantages of using this file format and the official W3C recommendation can be found here.