I use palletted png's, limited to 256 colors. Masking is achieved by
defining transmit for each pallette value intended to be transparent. In the
example Alan posted, you could get away with 16 color png's.

Use max_trace_level, but limit the depth to your actual requirements. I
believe this will save you memory and time in the future. Perhaps, your
current scene won't see much difference in render time, but best to learn
good habits now. :)

Grim

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