diff --git a/phpgwapi/inc/class.Template.inc.php b/phpgwapi/inc/class.Template.inc.php
index bd33950a6d..923c072cff 100644
--- a/phpgwapi/inc/class.Template.inc.php
+++ b/phpgwapi/inc/class.Template.inc.php
@@ -333,8 +333,11 @@
 					$str = preg_replace('/{([^ \t\r\n}]+)}/', "<!-- Template $handle: Variable \\1 undefined -->", $str);
 					break;
 			}
-
-			$str = str_replace (".gif", ".png",$str);
+			/* If they want NOGIF policy, then I do a global replace */
+			if ($GLOBALS['phpgw_info']['server']['imgtype_preference'] == 2)
+			{
+				$str = str_replace (".gif", ".png",$str);
+			}
 			return $str;
 		}
 
diff --git a/phpgwapi/inc/class.common.inc.php b/phpgwapi/inc/class.common.inc.php
index 883828d61d..5540d0f3ae 100644
--- a/phpgwapi/inc/class.common.inc.php
+++ b/phpgwapi/inc/class.common.inc.php
@@ -776,16 +776,18 @@
 
 		function find_image($appname,$image)
 		{
-
-			if (!isset($GLOBALS['phpgw_info']['server']['imgtype_preference_order']))
+			switch($GLOBALS['phpgw_info']['server']['imgtype_preference'])
 			{
-				$imgpref = Array('gif','jpg','png');
+				case 1:
+					$imgpref = Array('gif','jpg','png');
+					break;
+				case 2:
+					$imgpref = Array('png','jpg','nogifs');
+					break;
+				default:
+					$imgpref = Array('png','jpg','gif');
 			}
-			else
-			{
-				$imgpref = $GLOBALS['phpgw_info']['server']['imgtype_preference_order'];
-			}
-				
+	
 			if (!@is_array($this->found_files[$appname]))
 			{
 				$imagedir_olddefault = '/'.$appname.'/images';