I've been there before, nothing new. I know alot about image formats already. I've been working with them for almost 10 years now. My question was more on how Gamestudio is handling the images themselves.

But even if there was an image using lossless compression, it wouldn't look like that. That's color-banding brought on by 16-bit display, and is caused by Gamestudio.

My problem was I don't know if that's a bug, or just the way they set it up.

It doesn't really matter. Tga's are more versatile, and work well with their lossless compression if I decide to use it.