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@AdamA – Consider the difference using a mobile device to view a site with images used for e.g. all the rounded corners, compared to the same site using border-radius.
The CSS3 approach is likely to work far better as the site will either display the rounded corners or fall back to square ones. What won’t happen is the browser won’t have to download a bunch of extra images and then try and render them in the right places – using unnecessary bandwidth, and potentially prone to error.
The CSS3 approach is faster, using less bandwidth and is less prone to failing badly in browsers you’re not testing in.