Here are some things I tried that reduced the size to 150 kb and then 93 kb:
- set color reduction to selective
- choose a different number of colors. 256 is the default, but that's more than needed in this image (which is basically beige with some noise etc). It looked god at 16 colors (around 150 kb) and lost a bit but not much as 8 colors (which took it to 93 kb).
The same settings looked a bit nicer in Fireworks, and reduced the file to 70 kb.
Change it to PNG-8 if you haven't already since in most cases PNG-8 will produce a smaller file size to the outdated GIF format. Then you could use a tool such as PNGOUT to shave the PNG file size even further.
You're right ralph. Although Fireworks gets the fanfare for this feature Although someone may beat me to the punch at trying this out on photoshop, I'm going to try it and post my own personal results, soon