I don't know about you, but I'm not exactly on top of it when it comes to using the "proper" image formats in stories. What am I talking about? JPEG and PNG formats. Thankfully Digital Inspiration broke it down in layman's terms so we can all figure out when and when not to use PNG and JPEG formats.
Basically, PNG files are compressed in a way that doesn't involve a loss of image data, so pictures are clear and you don't get blurring or smudging. Therefore, they are best suited for images with lots of text, line art, and pics that don't have a lot of color. The photo here is a PNG file so you can see how clear the text turned out on the left side of the picture. And if you recall the hilarious story about my mom creating a happy face in IM for the first time, what I should have done was uploaded it in a PNG format since the text from the IM convo looks blurry. Most people end up using JPEG files since they are great for photographs (good for tone and color) and don't use up as much bandwidth.