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Not sure bout the screen shots but when your taking a pic, there is a gear icon on top left of screen or if your shooting portrait, top right. Hit that and you can adjust the resolution.
My LG Spectrum was doing the png thing before I rooted and installed a non-stock based app, never found a way to change the format. Also if you zoom when taking a picture it will lower the overall resolution of the image, it is a "software zoom" also known as "digital zoom" where basically the devices software crops the image so you can only see the "zoomed in" parts and throws away the rest of the image.