At present, the compression manager uses a few implementations of a modified Laplacian pyramid compression method (multi-resolutional analysis with overcomplete frames) discussed in papers presented at Data Compression Conferences. See http://okmij.org/ftp/ for the complete set of references to the papers.
Note, the compression is almost always lossy. To give the user an idea how well the delivered image would look like and whether important features the user is looking for would be preserved, the compression manager loads up some (relatively small) sample image and displays it along with the compressed and decompressed picture, using the parameters the user has set up.
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