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I use Photoshop to make my ip.bin logos. An image can have no more than 128 colors, but sometimes I find it necessary to make it less than that. If you save in GIF format and choose to only have, say, 72 colors... (use as few as possible while keeping the quality you want), you can then resave that GIF as a PNG to get the file size you want. I have found that just because that logo-insert program says the image is small enough, doesn't mean it will work. You may get a reboot if it's a little to big. I try to keep mine around the 6KB mark, but you may go bigger without problems.
-Ex
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