Picture Clarity!

Hey.

I’m now coming to the end of my website and am looking at the finer details before signing it off. I’ve noticed that the clarity of pictures is reduced when sizing them down in flash.

All my images are saved as png’s which is what I read as being the best format. Does anyone know the best way to handle images in flash and importing them in order to get the most out of them. E.g. is it better to pre-size them to exact requirements in Photoshop and avoid any sizing changes in Flash? Are PNG files actually the best way to go? or is using xml the best option?

Any input on this would be useful and much appreciated.
Thanks
Claire