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.

>>10
LOL PSP
This proves you're a moron. You still think it's PSP 3, or some sort of Deluxe Paint. I'd like to see your face the day you try PSP X or XI.

GIF is good enough, better compression is not much of a reason to use PNG.
You're a fucking retard. Not only GIF doesn't support anything you'd need other than your shitty obnoxious animations, but better compression is vital for internets, only you won't notice it in your stupid web sight in a cheap ISP your daddy pays for because nobody visits it.

only downside is that IE fucks things up
There are workarounds for this that will enable transparency. And let MSIE morons fuck themselves anyways. Just detect the HTTP User-Agent and serve goatse if they're using MSIE.