To use a jpg for file size and to maintain shawdow quality, set the "Matte" to the canvas color.
That is what I normally do however I need the image to have a transparent background because the image is placed, via a slideshow, over a background that has detail.
Other than using the png32 in Fireworks, I don't know of anything else
Hmmmm that was all I could work out, the only problem with that is the file size is so large.
Have you tried PNG 8 with Alpha transparency and 100% dithering?
You know that nearly works. The problem is that the edges of the images now look uneven and a bit jagged!
Never used PNG8 and am suprised it worked as well as it did as it uses only 265 colours and I am using a photo. What does the dither do at 100%?
Never used that either.
The file size is reduced to 127K which is a lot smaller that a PNG32 however, unless I can make the edges look smooth this wont work either