.png in Photoshop
 

Ok so i know you have to save a .png in 8-bit for it to work in graal, so i did that but the white color in the gfx is transparent, how do i fix that?

set the tranparency to a difrent color?

Make the backround a color you are not going to use. Like cynober.

I find that PNGs work with graal even if they are not 8bit, load the editor, place an image, save the level, close it, and open it again, then play and it should appear correct.

Problems arise with transparency only, do not use photoshop's "auto" transparency, apply your own when you do "Save for Web...", as well as graal doesn't appear to take with alpha channels.

go to "File">"Save For Web" then set the format to "PNG B-BIT" and you'll figure it out from there...

I use saveforweb to make tileset's :p.

Poor cynober, never gets used. :(...wait. What the hell is cynober? Cyan?
Magenta is cooler.