GIF is limited to 256 colors, on/off transparency, and so-so compression.
JPEG is limited to 24-bit color, no transparency, and phenominal compression
at the cost of introducing visual artifacts.  Especially in line art.
PNG supports 1-48 bit color, 1-16 bit transparency, better compression than
GIF, worse than JPEG.

But, the final format is the end product.  Right now you need to find a tool
that handles layers that you are comfortable with so you can produce some
final product.  Xara might be worth looking into, it is simpler than the
GIMP/Photoshop stuff...

ImageMagick is a great tool to speed up conversions, but if the command line
scares you, now isn't quite the time to learn it.

Jeff

-- 
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Computer Science is as much about computers as astronomy is about telescopes
        -- Edsger Wybe Dijkstra (1930-2002)
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