From what I have read so far, images are restricted to JPEG. Are there plans to allow GIF images? The transparent background of a gif really add special design elements to the screen presentation. Les

The only time you're restricted to jpeg is when you upload your app's icon... and you can always change the png files in your project manually. You are not restricted to using just jpeg files for images or buttons. I have several transparent png's which I use as my home screen's buttons.

DO NOT USE .GIF in your iPhone App. (caps intentional). If you want transparencies use the .PNG format. Way to many reasons to explain, and way beyond the scope of this forum, but.... GIF's don't play nicely with iOS. Use .PNG per Apple's documentation.

Can we use jpgs as pics in apps as well? think I tried once and a picture didn't show but it might have just been me :)

jpgs are fine as images (like in a gallery). Just not cool when uploading to the control panel or when using as Apple iTunes Artwork or device icon.

I created a app using a animated gif in my home screen. native xcode using Seattle Clouds. no problems. Will we be able to use animate gifs here?

An animated .GIF is not prohibited by buzztouch, it's more of an iOS thing. You're welcome to use whatever format you want. However, there are lots and lots of examples of .GIF's NOT working as expected so just be patient if you don't get the results you want. We recommend against .GIF's not because we don't like them but because iOS and the Apple Developer Guildelines recommend .PNG and .JPG ;-)