Images for an etext

I'm currently marking up "Through the Looking Glass", and I'm using an old
"dead-tree" copy, and a more recent annotated copy ("The Annotated Alice",
by Martin Gardner), to help me figure out what's what.

Query 3:
Both hard copies I have contain a number (according to the older book, 50)
of illustrations by John Tenniel. The
http://www.hwg.org/HWG/opcenter/Gutenburg/markup1a.html page says: "Most of
the e-texts will not have illustrations. If you wish to add an illustration
from the original text then you can, but great care must be taken that it is
from the original text, and not added in some recent addition. We would
suggest the use of the '.png' format for illustrations."

I'm as certain as I can be that Tenniel's illustrations were in the original
edition (and presumably also in the Millenium Fulcrum 1.7 edition, which is
what the etext says it is). I'd like to include the illustrations in the xml
version I produce - I have a scanner and can produce suitable files - so I'd
appreciate a quick rundown on exactly how to do this (or a reference to an
existing xml markup where it's been done).

Query 3a:
Is the .png format likely to be best for these pen-and-ink illustrations, or
would .gif files, which can contain only 2-bit color information (all that
is needed here) be a better choice in this case?

Rob

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