The difference between vector and raster images is often very difficult to grasp. I don't know much about PSP, haven't used it for years. But If you email me I'll send you a xar file so you can import it.
Once you see the results and play around you will grasp the different image types.
Egg
http://www.xlwebdesign.co.uk/tg/flir48png.png
Egg
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