It depends on your situation. However, it seems like your best bet would be to use the JpgBitmapEncoder since you are encoding the image and transferring it across the network. I don't see where you will see an improvement in quality or size by using the PngBitmapEncoder.
Here is a good article on the differences between PNG and JPG that should help in your decision:
http://www.turnkeylinux.org/blog/png-vs-jpg[
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