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Hmm, I never knew myself what slices were so I took a peek at the Photoshop help file and found out what they are. With slices you can effectivaly (spelling?) divide a graphic into how ever many parts you want. Each part is called a slice. When you save the file you save it as a HTML page. Each slice is then saved as an independent image. When you open up the HTML page, it opens up each slice seperately and when it is finished loading, looks like an unsliced image. This decreases download times. Once you have sliced an image, you can edit each slice seperatly. This means for example, you photoshop a car. If you decide to turn the headlights on, you can slice the image up so that you have one slice that just has the headlights. Then once each slice is saved, you can then animate turning the headlights on in the headlights slice. This would save converting the whole image to an animated gif and losing image quality. The headlights slice may lose some quality but it won't be as noticeable as opposed to converting the whole image to a gif.
