Changed the correlation value from .12 to .2 and the compressed imgur image has some interesting results (3 circles, one of them is on Waldo): http://cl.ly/imag

Changed the correlation value from .12 to .2 and the compressed imgur image has some interesting results (3 circles, one of them is on Waldo): http://cl.ly/image/0Z3k150S2z10 http://cl.ly/image/0Z3k150S2z10 Yeah, I'm getting the exact same results. So it looks like compression is messing with the algorithm's correlation ability. I think the problem is that red color values are often thrown out in image compression (moreso than intensity / green channels).