Shokan,

A couple of questions:

1. Is your Palette set to "optimized"?

2. Also, how big a color gradient are you trying to create? That is, if you are trying a simple ramp from white to black over 1000 pixels, banding will probably happen regardless of dithering settings. That's because most bitmap are exported using 256 steps to create a gradient. If you do the math, you end up having to duplicate the same color over multiple pixels.

PNG or a full color bitmap should avoid this issue. Make sure your dpi settings are screen (96 dpi - Xara default) and your image is not huge (H x W). I've imported PNG's without banding into Bryce and 3D Studio Max without any issues.

Good Luck,

milt