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go to the 'window' menu and open the 'optimisation window'. from there you can turn dithering off (normally a good idea), reduce the number of colours, and if you really need to adjust the lossiness (mostly just a last resort if you really need to make something smaller).
to see the effect of this go to the 'window' menu and select 'show optimised'
( ,
Sun 9 Mar 2003, 2:18,
archived)
to see the effect of this go to the 'window' menu and select 'show optimised'