Yes the assimilator program should be released before
playerworld owners can really start to convert stuff,
its too much work to change commands from gif to png/mng.
I think this mainly means when you use npcs that
have gifs as heads or swords or shields then you
will need to use the png/mng version of it, all
those images are already converted so there shouldn't
be a problem (ok ok on one of the computers the
shields and swords are not comverted yet

)
But other stuff don't need to be replaced immediatelly
but might be considered for the future.
I will also need to change the Graal.exe and main
Graal packages to use png/mng
Don't know what is meant with the baddies
though, there are not z3 baddies in the game