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Should I use PNG8 or PNG24?
In Photoshop 7, I saw so many settings...
Web Snap: 54%
Diffusion / Pattern / Noise
What's the optimal settings?
Also, when I want to set transparency for this image in PNG8, I couldn't find where I could set the color to be transparent.
Could anyone help?
If you have areas of solid, even colors then you may be able to get away with an 8 bit PNG, but you will likely need 24 bit PNG for reasonable color reproduction. 8 bit PNGs (or less) are optimal for size. 24 bit PNGs (or 48 bit PNGs) are optimal for color reproduction.
When I last used PSP, you needed to set the transparent color in the color palettes, not when you save the image.