Format doesn't "really" matter, I'd say use DDS because it's so compact. DDS isn't lossless though... the compression beats up the image quality, AND every time you open and then resave, it gets worse. Ok, I'm getting off topic.
Either a black background, or a bright pink/purple. If you do black, making a dropshadow will be easy, if you do pink/purple, I can cut it out, then apply some filters before adding a shadow-ish aura.
Quib
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