The answer is easy: Tiled Background is better for the optimization if you just want to show static graphic.
But I have a problem with blurry graphic. I searched forum and came to conclusion, it has to be power of 2, so I guess it mean that if the graphic is 392px wide it has to be 392px high.
Now I wonder. I have graphic that is 392x75. What would be better optimization-wise: make that 392x392 (having alpha to hide rest) in tiled background OR make it a sprite and turn off collisions and whatnot, keeping the file size small?
In my case it is the sprites that are sharp and the tiled background that are blurry.
Thank you! <img src="smileys/smiley20.gif" border="0" align="middle" />