diff --git a/pandatool/src/egg-palettize/eggPalettize.cxx b/pandatool/src/egg-palettize/eggPalettize.cxx
index 0ffb52fb46..21235c6a56 100644
--- a/pandatool/src/egg-palettize/eggPalettize.cxx
+++ b/pandatool/src/egg-palettize/eggPalettize.cxx
@@ -103,6 +103,17 @@ EggPalettize() : EggMultiFilter(true) {
      "ever been palettized, not just the egg files that appear on "
      "the command line.",
      &EggPalettize::dispatch_none, &_all_textures);
+  add_option
+    ("egg", "", 0, 
+     "Regenerate all egg files that need modification, even those that "
+     "aren't named on the command line.",
+     &EggPalettize::dispatch_none, &_redo_eggs);
+  add_option
+    ("redo", "", 0, 
+     "Force a regeneration of each image from its original source(s).  "
+     "When used in conjunction with -egg, this also forces each egg file to "
+     "be regenerated.",
+     &EggPalettize::dispatch_none, &_redo_all);
   add_option
     ("opt", "", 0, 
      "Force an optimal packing.  By default, textures are added to "
@@ -111,20 +122,6 @@ EggPalettize() : EggMultiFilter(true) {
      "to be rebuilt if necessary to optimize the packing, but this "
      "may invalidate other egg files which share this palette.",
      &EggPalettize::dispatch_none, &_force_optimal);
-  add_option
-    ("redo", "", 0, 
-     "Force a redo of everything.  This is useful in case something "
-     "has gotten out of sync and the old palettes are just bad.",
-     &EggPalettize::dispatch_none, &_force_redo_all);
-  add_option
-    ("R", "", 0, 
-     "Resize mostly-empty palettes to their minimal size.",
-     &EggPalettize::dispatch_none, &_optimal_resize);
-  add_option
-    ("egg", "", 0, 
-     "Regenerate all egg files that need modification, even those that "
-     "aren't named on the command line.",
-     &EggPalettize::dispatch_none, &_redo_eggs);
 
   add_option
     ("nolock", "", 0, 
@@ -327,6 +324,16 @@ run() {
     pal->_command_line_eggs.push_back(egg_file);
   }
 
+  if (_force_optimal) {
+    // If we're asking for an optimal packing, throw away the old
+    // packing and start fresh.
+    pal->reset_images();
+    _all_textures = true;
+
+    // Also turn off the rounding-up of UV's for this purpose.
+    pal->_round_uvs = false;
+  }
+
   if (_all_textures) {
     pal->process_all();
   } else {
@@ -334,12 +341,12 @@ run() {
   }
 
   if (_redo_eggs) {
-    if (!pal->read_stale_eggs()) {
+    if (!pal->read_stale_eggs(_redo_all)) {
       okflag = false;
     }
   }
 
-  pal->generate_images();
+  pal->generate_images(_redo_all);
 
   if (!pal->write_eggs()) {
     okflag = false;
diff --git a/pandatool/src/egg-palettize/eggPalettize.h b/pandatool/src/egg-palettize/eggPalettize.h
index 1833c68576..f73df4497e 100644
--- a/pandatool/src/egg-palettize/eggPalettize.h
+++ b/pandatool/src/egg-palettize/eggPalettize.h
@@ -45,8 +45,7 @@ private:
   bool _statistics_only;
   bool _all_textures; 
   bool _force_optimal;
-  bool _force_redo_all;
-  bool _optimal_resize;
+  bool _redo_all;
   bool _redo_eggs;
   bool _dont_lock_pi;
 
diff --git a/pandatool/src/egg-palettize/imageFile.cxx b/pandatool/src/egg-palettize/imageFile.cxx
index 74f25e622b..728893eb5b 100644
--- a/pandatool/src/egg-palettize/imageFile.cxx
+++ b/pandatool/src/egg-palettize/imageFile.cxx
@@ -196,8 +196,9 @@ exists() const {
     return false;
   }
   if (_properties._alpha_type != (PNMFileType *)NULL && 
-      _properties.uses_alpha()) {
-    if (_alpha_filename.exists()) {
+      _properties.uses_alpha() &&
+      !_alpha_filename.empty()) {
+    if (!_alpha_filename.exists()) {
       return false;
     }
   }
diff --git a/pandatool/src/egg-palettize/paletteGroup.cxx b/pandatool/src/egg-palettize/paletteGroup.cxx
index dcead03a62..401d92827f 100644
--- a/pandatool/src/egg-palettize/paletteGroup.cxx
+++ b/pandatool/src/egg-palettize/paletteGroup.cxx
@@ -306,6 +306,22 @@ write_image_info(ostream &out, int indent_level) const {
   }
 }
 
+////////////////////////////////////////////////////////////////////
+//     Function: PaletteGroup::reset_images
+//       Access: Public
+//  Description: Throws away all of the current PaletteImages, so that
+//               new ones may be created (and the packing made more
+//               optimal).
+////////////////////////////////////////////////////////////////////
+void PaletteGroup::
+reset_images() {
+  Pages::iterator pai;
+  for (pai = _pages.begin(); pai != _pages.end(); ++pai) {
+    PalettePage *page = (*pai).second;
+    page->reset_images();
+  }
+}
+
 ////////////////////////////////////////////////////////////////////
 //     Function: PaletteGroup::update_images
 //       Access: Public
@@ -313,11 +329,11 @@ write_image_info(ostream &out, int indent_level) const {
 //               it.
 ////////////////////////////////////////////////////////////////////
 void PaletteGroup::
-update_images() {
+update_images(bool redo_all) {
   Pages::iterator pai;
   for (pai = _pages.begin(); pai != _pages.end(); ++pai) {
     PalettePage *page = (*pai).second;
-    page->update_images();
+    page->update_images(redo_all);
   }
 }
 
diff --git a/pandatool/src/egg-palettize/paletteGroup.h b/pandatool/src/egg-palettize/paletteGroup.h
index 930fe450af..ad1e1f4ab4 100644
--- a/pandatool/src/egg-palettize/paletteGroup.h
+++ b/pandatool/src/egg-palettize/paletteGroup.h
@@ -59,7 +59,8 @@ public:
   void place_all();
 
   void write_image_info(ostream &out, int indent_level = 0) const;
-  void update_images();
+  void reset_images();
+  void update_images(bool redo_all);
 
 private:
   string _dirname;
diff --git a/pandatool/src/egg-palettize/paletteImage.cxx b/pandatool/src/egg-palettize/paletteImage.cxx
index 17c815894e..d56168a344 100644
--- a/pandatool/src/egg-palettize/paletteImage.cxx
+++ b/pandatool/src/egg-palettize/paletteImage.cxx
@@ -9,6 +9,7 @@
 #include "texturePlacement.h"
 #include "palettizer.h"
 #include "textureImage.h"
+#include "filenameUnifier.h"
 
 #include <indent.h>
 #include <datagram.h>
@@ -245,6 +246,7 @@ check_solitary() {
     placement->omit_solitary();
 
   } else {
+    // Zero or multiple.
     Placements::const_iterator pi;
     for (pi = _placements.begin(); pi != _placements.end(); ++pi) {
       TexturePlacement *placement = (*pi);
@@ -271,14 +273,38 @@ write_placements(ostream &out, int indent_level) const {
   }
 }
  
+////////////////////////////////////////////////////////////////////
+//     Function: PaletteImage::reset_image
+//       Access: Public
+//  Description: Unpacks each texture that has been placed on this
+//               image, resetting the image to empty.
+////////////////////////////////////////////////////////////////////
+void PaletteImage::
+reset_image() {
+  // We need a copy so we can modify this list as we traverse it.
+  Placements copy_placements = _placements;
+  Placements::const_iterator pi;
+  for (pi = copy_placements.begin(); pi != copy_placements.end(); ++pi) {
+    TexturePlacement *placement = (*pi);
+    placement->force_replace();
+  }
+
+  _placements.clear();
+  _cleared_regions.clear();
+  unlink();
+  _new_image = true;
+}
+ 
 ////////////////////////////////////////////////////////////////////
 //     Function: PaletteImage::update_image
 //       Access: Public
 //  Description: If the palette has changed since it was last written
-//               out, updates the image and writes out a new one.
+//               out, updates the image and writes out a new one.  If
+//               redo_all is true, regenerates the image from scratch
+//               and writes it out again, whether it needed it or not.
 ////////////////////////////////////////////////////////////////////
 void PaletteImage::
-update_image() {
+update_image(bool redo_all) {
   if (is_empty() && pal->_aggressively_clean_mapdir) {
     // If the palette image is 'empty', ensure that it doesn't exist.
     // No need to clutter up the map directory.
@@ -287,6 +313,12 @@ update_image() {
     return;
   }
 
+  if (redo_all) {
+    // If we're redoing everything, throw out the old image anyway.
+    unlink();
+    _new_image = true;
+  }
+
   // Do we need to update?
   bool needs_update =
     _new_image || !exists() ||
@@ -411,7 +443,7 @@ get_image() {
     }
   }
 
-  nout << "Generating new " << get_filename() << "\n";
+  nout << "Generating new " << FilenameUnifier::make_user_filename(get_filename()) << "\n";
 
   // We won't be using this any more.
   _cleared_regions.clear();
diff --git a/pandatool/src/egg-palettize/paletteImage.h b/pandatool/src/egg-palettize/paletteImage.h
index 53dc98222b..c06104330c 100644
--- a/pandatool/src/egg-palettize/paletteImage.h
+++ b/pandatool/src/egg-palettize/paletteImage.h
@@ -40,7 +40,8 @@ public:
   void check_solitary();
 
   void write_placements(ostream &out, int indent_level = 0) const;
-  void update_image();
+  void reset_image();
+  void update_image(bool redo_all);
 
 private:
   bool find_hole(int &x, int &y, int x_size, int y_size) const;
diff --git a/pandatool/src/egg-palettize/palettePage.cxx b/pandatool/src/egg-palettize/palettePage.cxx
index 23f0ee49c7..045f389e13 100644
--- a/pandatool/src/egg-palettize/palettePage.cxx
+++ b/pandatool/src/egg-palettize/palettePage.cxx
@@ -190,6 +190,25 @@ write_image_info(ostream &out, int indent_level) const {
   }
 }
 
+////////////////////////////////////////////////////////////////////
+//     Function: PalettePage::reset_images
+//       Access: Public
+//  Description: Throws away all of the current PaletteImages, so that
+//               new ones may be created (and the packing made more
+//               optimal).
+////////////////////////////////////////////////////////////////////
+void PalettePage::
+reset_images() {
+  Images::iterator ii;
+  for (ii = _images.begin(); ii != _images.end(); ++ii) {
+    PaletteImage *image = (*ii);
+    image->reset_image();
+    delete image;
+  }
+
+  _images.clear();
+}
+
 ////////////////////////////////////////////////////////////////////
 //     Function: PalettePage::update_images
 //       Access: Public
@@ -197,11 +216,11 @@ write_image_info(ostream &out, int indent_level) const {
 //               it.
 ////////////////////////////////////////////////////////////////////
 void PalettePage::
-update_images() {
+update_images(bool redo_all) {
   Images::iterator ii;
   for (ii = _images.begin(); ii != _images.end(); ++ii) {
     PaletteImage *image = (*ii);
-    image->update_image();
+    image->update_image(redo_all);
   }
 }
 
diff --git a/pandatool/src/egg-palettize/palettePage.h b/pandatool/src/egg-palettize/palettePage.h
index 106740ecea..beb9799af3 100644
--- a/pandatool/src/egg-palettize/palettePage.h
+++ b/pandatool/src/egg-palettize/palettePage.h
@@ -41,7 +41,8 @@ public:
   void unplace(TexturePlacement *placement);
 
   void write_image_info(ostream &out, int indent_level = 0) const;
-  void update_images();
+  void reset_images();
+  void update_images(bool redo_all);
 
 private:
   PaletteGroup *_group;
diff --git a/pandatool/src/egg-palettize/palettizer.cxx b/pandatool/src/egg-palettize/palettizer.cxx
index df2fb3c81c..0d9296cb4f 100644
--- a/pandatool/src/egg-palettize/palettizer.cxx
+++ b/pandatool/src/egg-palettize/palettizer.cxx
@@ -346,23 +346,41 @@ process_all() {
 }
 
 ////////////////////////////////////////////////////////////////////
-//     Function: Palettizer::generate_images
+//     Function: Palettizer::reset_images
 //       Access: Public
-//  Description: Actually generates the appropriate palette and
-//               unplaced texture images into the map directories.
+//  Description: Throws away all of the current PaletteImages, so that
+//               new ones may be created (and the packing made more
+//               optimal).
 ////////////////////////////////////////////////////////////////////
 void Palettizer::
-generate_images() {
+reset_images() {
   Groups::iterator gi;
   for (gi = _groups.begin(); gi != _groups.end(); ++gi) {
     PaletteGroup *group = (*gi).second;
-    group->update_images();
+    group->reset_images();
+  }
+}
+
+////////////////////////////////////////////////////////////////////
+//     Function: Palettizer::generate_images
+//       Access: Public
+//  Description: Actually generates the appropriate palette and
+//               unplaced texture images into the map directories.  If
+//               redo_all is true, this forces a regeneration of each
+//               image file.
+////////////////////////////////////////////////////////////////////
+void Palettizer::
+generate_images(bool redo_all) {
+  Groups::iterator gi;
+  for (gi = _groups.begin(); gi != _groups.end(); ++gi) {
+    PaletteGroup *group = (*gi).second;
+    group->update_images(redo_all);
   }
 
   Textures::iterator ti;
   for (ti = _textures.begin(); ti != _textures.end(); ++ti) {
     TextureImage *texture = (*ti).second;
-    texture->copy_unplaced();
+    texture->copy_unplaced(redo_all);
   }
 }
 
@@ -372,17 +390,21 @@ generate_images() {
 //  Description: Reads in any egg file that is known to be stale, even
 //               if it was not listed on the command line, so that it
 //               may be updated and written out when write_eggs() is
-//               called.  Returns true if successful, or false if
-//               there was some error.
+//               called.  If redo_all is true, this even reads egg
+//               files that were not flagged as stale.
+//
+//               Returns true if successful, or false if there was
+//               some error.
 ////////////////////////////////////////////////////////////////////
 bool Palettizer::
-read_stale_eggs() {
+read_stale_eggs(bool redo_all) {
   bool okflag = true;
 
   EggFiles::iterator ei;
   for (ei = _egg_files.begin(); ei != _egg_files.end(); ++ei) {
     EggFile *egg_file = (*ei).second;
-    if (!egg_file->has_data() && egg_file->is_stale()) {
+    if (!egg_file->has_data() && 
+	(egg_file->is_stale() || redo_all)) {
       if (!egg_file->read_egg()) {
 	okflag = false;
 
diff --git a/pandatool/src/egg-palettize/palettizer.h b/pandatool/src/egg-palettize/palettizer.h
index 2fcc5823e5..a1ccdfd51c 100644
--- a/pandatool/src/egg-palettize/palettizer.h
+++ b/pandatool/src/egg-palettize/palettizer.h
@@ -37,8 +37,9 @@ public:
   void read_txa_file(const Filename &txa_filename);
   void process_command_line_eggs();
   void process_all();
-  void generate_images();
-  bool read_stale_eggs();
+  void reset_images();
+  void generate_images(bool redo_all);
+  bool read_stale_eggs(bool redo_all);
   bool write_eggs();
 
   EggFile *get_egg_file(const string &name);
diff --git a/pandatool/src/egg-palettize/textureImage.cxx b/pandatool/src/egg-palettize/textureImage.cxx
index 4c9287b603..b25f6c6ce4 100644
--- a/pandatool/src/egg-palettize/textureImage.cxx
+++ b/pandatool/src/egg-palettize/textureImage.cxx
@@ -270,6 +270,12 @@ post_txa_file() {
 	(_properties._num_channels == 3 || _properties._num_channels == 4)) {
       consider_grayscale();
     }
+
+    // Also consider downgrading from alpha to non-alpha.
+    if (_properties._got_num_channels &&
+	(_properties._num_channels == 2 || _properties._num_channels == 4)) {
+      consider_unalpha();
+    }
   }
 
   if (_request._format != EggTexture::F_unspecified) {
@@ -426,9 +432,12 @@ get_preferred_source() {
 //               it has been unplaced.  Also removes the old filenames
 //               for previous sessions where it was unplaced, but is
 //               no longer.
+//
+//               If redo_all is true, this recopies the texture
+//               whether it needed to or not.
 ////////////////////////////////////////////////////////////////////
 void TextureImage::
-copy_unplaced() {
+copy_unplaced(bool redo_all) {
   // First, we need to build up the set of DestTextureImages that
   // represents the files we need to generate.
   Dests generate;
@@ -458,12 +467,19 @@ copy_unplaced() {
     }
   }
 
-  // Now remove the old files that we previously generated, but we
-  // don't need any more.
-  remove_old_dests(generate, _dests);
+  if (redo_all) {
+    // If we're redoing everything, we remove everything first and
+    // then recopy it again.
+    Dests empty;
+    remove_old_dests(empty, _dests);
+    copy_new_dests(generate, empty);
 
-  // And then copy in the new ones.
-  copy_new_dests(generate, _dests);
+  } else {
+    // Otherwise, we only remove and recopy the things that changed
+    // between this time and last time.
+    remove_old_dests(generate, _dests);
+    copy_new_dests(generate, _dests);
+  }
 
   // Clean up the old set.
   Dests::iterator di;
@@ -697,6 +713,38 @@ consider_grayscale() {
   _properties._num_channels -= 2;
 }
 
+////////////////////////////////////////////////////////////////////
+//     Function: TextureImage::consider_unalpha
+//       Access: Private
+//  Description: Examines the actual contents of the image to
+//               determine if its alpha channel should be eliminated
+//               (e.g. it's completely white, and therefore
+//               pointless).
+////////////////////////////////////////////////////////////////////
+void TextureImage::
+consider_unalpha() {
+  const PNMImage &source = read_source_image();
+  if (!source.is_valid()) {
+    return;
+  }
+
+  if (!source.has_alpha()) {
+    return;
+  }
+
+  for (int y = 0; y < source.get_y_size(); y++) {
+    for (int x = 0; x < source.get_x_size(); x++) {
+      if (source.get_alpha_val(x, y) != source.get_maxval()) {
+	// Here's a non-white pixel; the alpha channel is meaningful.
+	return;
+      }
+    }
+  }
+
+  // All alpha pixels in the image were white!
+  _properties._num_channels--;
+}
+
 ////////////////////////////////////////////////////////////////////
 //     Function: TextureImage::remove_old_dests
 //       Access: Private
diff --git a/pandatool/src/egg-palettize/textureImage.h b/pandatool/src/egg-palettize/textureImage.h
index 248ed9e82d..4f735739a1 100644
--- a/pandatool/src/egg-palettize/textureImage.h
+++ b/pandatool/src/egg-palettize/textureImage.h
@@ -63,7 +63,7 @@ public:
 
   SourceTextureImage *get_preferred_source();
 
-  void copy_unplaced();
+  void copy_unplaced(bool redo_all);
 
   const PNMImage &read_source_image();
   const PNMImage &get_dest_image();
@@ -82,6 +82,7 @@ private:
 
   void assign_to_groups(const PaletteGroups &groups);
   void consider_grayscale();
+  void consider_unalpha();
 
   void remove_old_dests(const Dests &a, const Dests &b);
   void copy_new_dests(const Dests &a, const Dests &b);