So I am also sending this to both the pstricks and the powerdot lists as it relates to both, but mostly to compiling via dvi-> dvips -< ps2pdf or similar. I make my lecture slides with Powerdot ...
I've got some PNG images within my LaTeX document. The quality of the image files is sufficient and the result using LaTeX and viewing the resulting DVI file is quite what I expect - looks good. But ...