Thank you Candyness, i'll save it as 16 bit then. Btw the topic in the link seems to be either missing or off limits to me. Well since i'm a newbie. 
I'm following the instructions attached to the test. In one of the documents said "Save as PNG-8, grayscale, 32 colours. Zip (.zip, not .rar) and upload", hence my confusion.
Now i just have to finish saving to upload it.
thanxx again.

I'm following the instructions attached to the test. In one of the documents said "Save as PNG-8, grayscale, 32 colours. Zip (.zip, not .rar) and upload", hence my confusion.
Now i just have to finish saving to upload it.
thanxx again.