Has anyone C code to filter frames to 1bit color depth approximation?
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you want to convert the image to grayscale properly (using luminance, not the mean of the rgb colors), then you can palettize it using a dithering algorithm like floyd-steinberg, with a palette containing only the colors black and white.
I'm looking for a source code in C that does that, to include it in frei0r, before I have to go and write it myself...
I told you what to look for. It's a simple algorithm. Maybe try looking at the "implementation" section on the wikipedia page...