PNG or GIF?

I have absolutely no idea where to ask this question, so I've come here for help. I like to make sprites, but I've been saving all of them in the GIF format. It has come to my attention that PNG can also do transparencies and animations, but I can only save my animations in GIF anyway (I use Jasc Animation Shop). If this is all painfully obvious to you guys, I'll just say sorry in advance, but I've just had to learn as I go.

Anyway, I have tested both formats out, but the only difference seems to be file size. Which format is best for saving transparencies? I've tried to read up on the differences, but every single god damn article is in crazy nerd talk, so it tends to go over my head at times. I hope someone might respond here.

>>9
LOL PSP

Adobe does just fine with PNG if you use Imageready, Fireworks is fine too.

GIF is good enough, better compression is not much of a reason to use PNG. However, 256 limit sucks in many cases so unless you're saving low-colour pixel art, you'll probably want the 24-bit support or proper 32-bit alpha support PNG offers - only downside is that IE fucks things up. I personally use PNG but serve out .gif equivalents to people with older IE user agents on my site, and use PNG a lot for other things. GIF wins on compatibility though - stuff like AIM still doesn't support PNGs as inline images, etc.