In this paper we present the results of a study on the effects of JPEG 2000 compression and file format configuration on image quality. This study was conducted as part of an institutional reassessment of still image file format choices for master image files, and parallels other institutional efforts to evaluate JPEG 2000 image compression. This work extends the thinking on this topic by focusing on identifying visually lossless compression for different collections types, by relating subjective assessment to objective or metrics-based analyses of image quality, and by evaluating the effect of JPEG 2000 file configuration on image quality. Additional work was done to evaluate the effect of scanner sampling efficiency on lossy image compression, and an assessment of traditional JPEG compression was done for comparison.