The size of the image is very important - don't save larger image than you will display (if you show800x600, don't save them as 1200x1024 for example, as you will waste a lot of space).
JPG is usually for photographs, and will lose some quality (but often not visible to the human eye). PNG is lossless and is better for "graphics" (like a web page with lots of white space).
Also, when you save a JPG you can select the compression quality, and this can reduce the size significantly (for example saving JPG with 80% quality instead of 90%). If you reduce the quality too much, your images will suffer, so you need to experiment with different quality for the same image, and see for yourself. You change the compression quality in your image editor, usually at the point where you save the image
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