See http://www.4p8.com/eric.brasseur/gamma.html
"Photographs that have been scaled with these software have been degradated. The degradation is often faint but probably most pictures contain at least an array where the degradation is clearly visible. I suppose this happens since the first versions of these software, maybe 20 years ago....
Photoshop
It seems Photoshop CS3 operates on the images properly if they are expressed in 32 bit format. So you just have to convert an image to 32 bit before making operations like scaling on it. It is not known wether other versions than CS3 operate correctly in 32 bit format. When the image is expressed in 8 bit, version CS3 operates incorrectly. It is not either known wether Photoshop CS3 expresses 32 bit images in linear format or the scaling routine performs the necessary gamma conversions when scaling 32 bit images.
One drawback is some tools are not yet available for 32 bit encoded images, like bicubic resampling. Next procedure is more complicated but it should allow to work around. The only downside would be some rounding errors (probably not visible) as a result of converting to a linear gamma and back again:
1. Convert to 16 bit/channel mode to minimize rounding errors (optional).
2. Go to "Convert to profile" (in CS3, this is under the Edit menu).
3. Select the current profile for the destination space (so that both the source and destination space are referencing the same color space) *but do not hit OK*. If your document is not yet color managed, sRGB is probably the safest guess. This will pre-populate most of the fields for the next step...
4. Select "Custom RGB" for the destination space. You will get a pop-up window asking for the parameters for your custom color space.
5. In the options for setting up a custom color space, leave everything unchanged except set the gamma to 1.0.
6. Press OK in the Custom RGB dialog box and then press OK on the Convert to Profile dialog box.
7. Resize as normal.
8. Convert to your previous color space.
9. If you converted to 16bit/channel mode, you may want to convert back to 8bit/channel at this point."
I tested his test image in CS3 on a Mac, and as predicted, it scales quite badly - unless you convert to 32-bit first. That might be a slow and expensive operation on larger images, since it doubles the size of a 16-bit file, and quadruples the size of an 8-bit file. It's ironic that you have to up-size before you can down-size, as it were.
Dunno how vital this really is, but if you like to understand the underlying algorithm, it's... interesting.
English spelling is very hard, I admit, but the word degredated sounds cute to a native English speaker.
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