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If it's for a banner then you'd probably be better off using a jpg due to bandwidth issues. PNG files can be rather large. You might just need to save the jpg with a higher quality setting to fix your problem. If you have problems getting the balance between quality and file size right then you'd be better off talking to one of the graphics people as image manipulation isn't really my forte.
If you did change it to a .png or another format, then you'd have to change the code to reflect the filename change.
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