diff --git a/gm/gmmain.cpp b/gm/gmmain.cpp
index f0de5bd..2d341e9 100644
--- a/gm/gmmain.cpp
+++ b/gm/gmmain.cpp
@@ -171,7 +171,7 @@
 static ErrorBitfield compare(const SkBitmap& target, const SkBitmap& base,
                              const SkString& name,
                              const char* renderModeDescriptor,
-                             SkBitmap* diff) {
+                             SkBitmap* diff, uint32_t tolerance) {
     SkBitmap copy;
     const SkBitmap* bm = &target;
     if (target.config() != SkBitmap::kARGB_8888_Config) {
@@ -206,16 +206,20 @@
             SkPMColor c0 = *bp->getAddr32(x, y);
             SkPMColor c1 = *bm->getAddr32(x, y);
             if (c0 != c1) {
-                SkDebugf(
+                SkPMColor trueDiff = compute_diff_pmcolor(c0, c1);
+                if (SkGetPackedR32(trueDiff) > tolerance || SkGetPackedG32(trueDiff) > tolerance
+                    || SkGetPackedB32(trueDiff) > tolerance) {
+                    SkDebugf(
 "----- %s pixel mismatch for %s at [%d %d] base 0x%08X current 0x%08X\n",
                          renderModeDescriptor, name.c_str(), x, y, c0, c1);
 
-                if (diff) {
-                    diff->setConfig(SkBitmap::kARGB_8888_Config, w, h);
-                    diff->allocPixels();
-                    compute_diff(*bm, *bp, diff);
+                    if (diff) {
+                        diff->setConfig(SkBitmap::kARGB_8888_Config, w, h);
+                        diff->allocPixels();
+                        compute_diff(*bm, *bp, diff);
+                    }
+                    return ERROR_PIXEL_MISMATCH;
                 }
-                return ERROR_PIXEL_MISMATCH;
             }
         }
     }
@@ -438,11 +442,12 @@
                                                 SkBitmap &bitmap,
                                                 const SkBitmap& comparisonBitmap,
                                                 const char diffPath [],
-                                                const char renderModeDescriptor []) {
+                                                const char renderModeDescriptor [],
+                                                uint32_t tolerance = 0) {
     ErrorBitfield errors;
     SkBitmap diffBitmap;
     errors = compare(bitmap, comparisonBitmap, name, renderModeDescriptor,
-                     diffPath ? &diffBitmap : NULL);
+                     diffPath ? &diffBitmap : NULL, tolerance);
     if ((ERROR_NONE != errors) && diffPath) {
         // write out the generated image
         SkString genName = make_filename(diffPath, "", name, "png");
@@ -482,7 +487,8 @@
                                          const char renderModeDescriptor [],
                                          SkBitmap& bitmap,
                                          SkDynamicMemoryWStream* pdf,
-                                         const SkBitmap* comparisonBitmap) {
+                                         const SkBitmap* comparisonBitmap,
+                                         uint32_t tolerance = 0) {
     SkString name = make_name(gm->shortName(), gRec.fName);
     ErrorBitfield retval = ERROR_NONE;
 
@@ -497,7 +503,7 @@
     if (comparisonBitmap) {
         retval |= compare_to_reference_image(name, bitmap,
                                              *comparisonBitmap, diffPath,
-                                             renderModeDescriptor);
+                                             renderModeDescriptor, tolerance);
     }
     return retval;
 }
@@ -513,6 +519,10 @@
     return pict;
 }
 
+static bool EncodeBitmap(SkWStream* wStream, const SkBitmap& bitmap) {
+    return SkImageEncoder::EncodeStream(wStream, bitmap, SkImageEncoder::kPNG_Type, 100);
+}
+
 static SkPicture* stream_to_new_picture(const SkPicture& src) {
 
     // To do in-memory commiunications with a stream, we need to:
@@ -522,7 +532,7 @@
     // ?!?!
 
     SkDynamicMemoryWStream storage;
-    src.serialize(&storage);
+    src.serialize(&storage, &EncodeBitmap);
 
     int streamSize = storage.getOffset();
     SkAutoMalloc dstStorage(streamSize);
@@ -531,7 +541,7 @@
     //@todo thudson 22 April 2011 when can we safely delete [] dst?
     storage.copyTo(dst);
     SkMemoryStream pictReadback(dst, streamSize);
-    SkPicture* retval = new SkPicture (&pictReadback);
+    SkPicture* retval = SkNEW_ARGS(SkPicture, (&pictReadback, NULL, &SkImageDecoder::DecodeStream));
     return retval;
 }
 
@@ -623,8 +633,11 @@
     if (kRaster_Backend == gRec.fBackend) {
         SkBitmap bitmap;
         generate_image_from_picture(gm, gRec, repict, &bitmap);
+        // Allow for slight differences in color due to PNG encoding bitmaps, which does not restore
+        // our premultiplied alpha properly.
+        static const uint32_t tolerance = 50;
         return handle_test_results(gm, gRec, NULL, NULL, diffPath,
-                            "-serialize", bitmap, NULL, &comparisonBitmap);
+                            "-serialize", bitmap, NULL, &comparisonBitmap, tolerance);
     } else {
         return ERROR_NONE;
     }