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I thought there is only PNG8 and png32, but photoshop has option for PNG24, and fireworks has all 3 options. Which is better for web world?

Also when I export PNG24 with alpha transparency in fireworks, it always adds background color, but in photoshop, it exports with alpha .

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"Also when I export PNG24 with alpha transparency in fireworks, it always adds background color, but in photoshop, it exports with alpha ."

You need a PNG32 for the alpha channel, so when you save a PNG24 with an alpha channel, PhotoShop actually makes it a PNG32.

In Fireworks, it actually let's you manually make the decision, so if you choose PNG24, you lose the alpha channel in the process.

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