thecoalman - 7:49 pm on Apr 13, 2010 (gmt 0)
with all sorts of compression artifacts in what are supposed to be smooth flat color areas . . .
.gif excels when your image contains text, solid one color backgrounds, sharp lines of contrasting color etc. A simple example will be taking a screenshot of this forum. The text will remain crisp, you'll get nice lines on all the edges and a much smaller file size than a .jpg.
.jpg however will produce much smaller and better reproductions of photo type images.