The image type determines the number of grayscale levels in an image and its maximum size. Generally, the more grayscale levels an image has, the smaller the maximum size of the image.

Click on the 'Black & White' radio button to create two color black and white images. The size limit of black and white images can be up to twice as large as grayscale images.

Click on the '4 Level Grayscale' radio button to create four color grayscale images.

Click on the '16 Level Grayscale' radio button to create 16 color grayscale images. Check the 'Use only 8 levels' to use only the middle 8 grayscale levels of the 16 level palette. This is useful because the Palm display can cause the four darkest colors to appear as black and the four lightest colors to appear as white. At the time of this writing, only the Palm IIIx and Palm V support 16 level grayscale images.

Dithering is a process of making a limited number of colors seem like more by creating a pattern of two similar colors to simulate a third color. The dithering options are 'None', 'Ordered' and 'Error Diffusion'. Ordered dithering is not available for 16 level grayscale images.

Compressed images take up less space on your handheld device, but might take longer to display on devices which use PalmOS 1.0 or 2.0 and on devices that have a limited amount of free dynamic RAM available.