UPDATE..... This website was created yesturday, and has only had 28 views when this is posted.
http://openstego.sourceforge.net/. It was found through Samir's Blog at http://syvaidya.blogspot.com/ Check it out - Aparently it was made by the creator of Openstego. He also has another product... the Vapour Liquid Equilibrium :S
After the Openstego programme is downloaded and you try to decode the message embedded in the picture it asks for a password....after all passwords we could think of were tried, we still get the following error message, and then the following text is displayed... Also, thanks to Andrea, who emailed the creator of Openstgo (who has a g-mail email account) we got the following reply with regards to passwords and the GZIP problem...
Date: Fri, 18 Jan 2008 16:46:56 +0530
Subject: Re: A strange request
Hi Andrea,I got exactly same request few hours back. Actually, the GZIP problem means that the password is wrong. There is no way to determine whether password is correct or not. But if you get GZIP exception then it is very much wrong. Try some other password. By the way, that "README.txt" is the name of the file that was embedded inside the image. It is not the password. It is just coincidence that it is getting accepted as password. There might be huge number of such strings which would get accepted as password, but actually are not.