I have seen functions that can optimise images using smush.it for your website but they still call the actual yahoo smushit server.
Are there any scripts like this that i can install locally to compress images after a user uploads them.
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if you are on a linux box, there is http://sourceforge.net/projects/littleutils/ which offers
if you are running wordpress there is even a handy dandy plugin, that works with it, http://wordpress.org/extend/plugins/cw-image-optimizer/
*i am not using either of the above links but i plan to when i rebuild my current server.