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I use microsoft Paint for this task (since it's good for nothing else :D). Open the screenshot and then Save As under .jpeg/.jpg format. The downside to converting them though is that the jpg loses a lot of a screen's vibrant color. When you're trying to keep low on disk space use though it can save you a lot (I had more than a gig of space taken up by screens before I converted them a few months ago :P).

thx