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Originally Posted by GameMaster
For most signatures, you'll want to save it as a JPEG. For simple ones with solid colors, GIF will be fine and it's not as big a file.
The reason you get those jagged areas when you're saving it as a gif is because the gif format is only capable of displaying 215 colors. That means any image with gradients or more than 215 colors is going to be simplified when saved as a gif, resulting in having a jagged, not as good looking picture. Even though those signatures you made look like they don't have many different colors, there's actually thousands of different shades of blue and black. So the the computer decided to cut out the varying shades of black and gray on your font, giving it a jagged bit-like look.
JPEG, however, can store thousands of colors. So for complex images like yours, JPEG is better.
With simple signatures like mine, GIF is better becuase it can actually distinguish the few colors present better. If I used JPEG, everything would've blended more giving it a less sharp look.
However, when using JPEG, you sacrafise the ability to have transparency effects like Null's Sonic creation above. It just depends on what's most important to you.
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he does use jpg, i said to use gif instead of coloring the section he wants invisable.
However you did bring up a point that i forgot to mention. usually when i make a gif to have transparent section. its outlined in black, which gives it a smoother look on the transparent edge.
Also, what program are you using? there should be no reason a gif should look sharper then a jpg, in most cases they should look exactly the same.