Fireworks is a web graphics program. It is used to create images, logos, banners, buttons, animation, and text effects. Fireworks is similar to Photoshop.
However, Photoshop tries to work for both the web world and the print world. Macromedia created Fireworks to work with graphics specifically for the web.
Because both Dreamweaver and Fireworks are Macromedia products, any image created in Fireworks and saved as a .gif or .jpg can be easily edited from Dreamweaver.
Fireworks defaults to .png (portable network graphic). PNGs can be resized and manipulated multiple times without loosing quality. However, older browsers do not support .png. Also, Fireworks .png are not meant to be added to webpages – they are large files with "annotations" added. These "annotations" act as a memory of your last edits - allowing you to easily retrace your steps or view what effects you have added to the image within Fireworks.
Fireworks will create rollovers, create animation, optimize images and create images/logos.