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is this information going to be going where that piece of paper is all torn? you could have like a more rectangular piece of paper that overlays this background and could have your content on it.. i think that would look pretty effective. the compression is bad, but you already know that. the nav seems pretty low on the screen, if i was going to that site at 640x480 i would kill you. seems more like a print piece than a website only cuz i can't really see any evidence of where content would go. but your color palette is nice, and it looks pretty.
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