Method and apparatus for providing texture and/or alpha compression. In
one embodiment, the present invention incorporates stored palettes, e.g.,
a luminance palette and a chrominance palette such that, compressed
texture data pertaining to a fixed blocksize is decoded and applied to
the stored palettes to extract the texel data. In a second embodiment,
the present method uses a plane to estimate the alpha value at each of
the texels, and a three-bit correction factor to adjust the estimate to
produce a final alpha value.