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Hi Darkloke

Suppose you must convert with multiple levels of transparency in a PNG-8 format. In that case, I think you have to go beyond Photoshop for that capability and I mentioned some options in a prior post.

Photoshop can easily create a PNG-8 file with lower color tones on the edge to simulate transparency (which may not look good depending on the background upon which the image is overlayed).

You use the Save for Web command, and they have an option for dithering transparency (which is just changing the tone of solid colors where there was previously transparency.

I have two screenshots, the first showing the look of full channel transparency with PNG-24 and the other showing the outputting preview with one of the three transparency dithering options.

PNG-24 output preview:

[ATTACH=full]149211[/ATTACH]

PNG-8 preview with transparency "dithering"

[ATTACH=full]149212[/ATTACH]

Hope this incremental information is helpful

John Wheeler