Yes, it displays most common image formats, such as: (jpg, bmp, and png) I have not gotten it to recognize GIF files (with Brewsky 8900), but I bet that it is the format used for animations.
(JPG) should be the primary choice since it is usually the most compressed (smallest file size) for high resolution images. (BMP) is probably the least choice since it is a raw Bitmap file (largest file size). I do not know much about (PNG) files or it's compression capability, other than often used in Macromedia and Linux graphic generators to display bar graphs. (such as webstats)
Most graphic programs convert between all of the above formats. I mostly use PaintShop Pro and LViewPro for my conversion and enhancement (cropping and color/brightness correction) If you need a copy of either, I will send the link on my server.