Problem with color banding on a blue sky using LR4.3

Hi,
Recently, I updated my LR3 to LR4.3 and my camera from Olympus EP2 to OMD. So, I am not sure if any of these factors play a role but, I started having severe banding on photos taken in vivid sunny day with a blue sky.
I am not an advanced LR user and, my process of developing photos in LR has always been pretty simple. First, I export RAW format pictures from a card to a hard drive. Then, I do some adjustments and make two jpeg copies from each RAW file.
One copy I in Export dialog box File Settings as a JPEG, Color Space sRGB, 100% quality and another copy I export for web so, I limit to some minimum size without setting any quality reductions.
Again, in the Export dialog box -> File Setting -> check (checkbox) Limit File Size to 300KB to 1MB. In this sample case, file was farely large so, LR did not allow me to save this file in less than 950KB. (Most of my pictures are saved to 400KB just fine)
Here is the link to the photo https://picasaweb.google.com/lh/photo/2VnXu6_Q8eB1u_4Zv4pE5aRyWIM3b1U0dQsgxpOe7AA?feat=dir ectlink
Thank you in advance,
Gena

genadi_mak wrote:
I just tried to export a file from my old EP2 with the same settings as I always have done 100% quality and limited size of the file to 450KB using LR4.3. And, I see banding so, this is definately how LR4.3 compresses files vs whatever method of compression was done in LR3.
If you are using the same Export settings as LR3 then it's probably due to PV2012's more aggressive tonal controls. Try the same Export using LR4.4 using a few images adjusted using PV2010 to confirm.
genadi_mak wrote:
I experimented a bit and found that if I lower quality to 77% and Resize to Fit the photo to 1000X1000, I get the size of the file down to 350KB and good results on my 24" monitor but, will this be enough to print 4X6 if needed?
For best results most printers require 300dpi image files, which would be 1800x1200 for 6" x 4" prints, but you can get reasonable results down to as low as 150ppi (900x600).
genadi_mak wrote:
If I leave quality to 100% and Resize to 1000X1000 the size of the file increases to 650KB. This will result in page with photo catalog loading longer.
This is the opposite of what you should be doing to maintain the smallest files size. The only reason ro use a 100% Quality JPEG is if you plan on doing further editing to the file. Even when uploading files to a printer a 90% Quality setting is very adequate and will NOT show any difference in the final print. For the Web I have already suggested a JPEG Quality of 50 is adequate. Please read the article at the link Andrew posted and my comments.
Try an Export using sRGB, 50 Quality, 1000x1000 Image Sizing, and Screen Standard Sharpening. Look at the exported images in LR at 1:1 view for visual artifacts such as banding, then post  them on the web and look at them at full-size. They should look identical. If not let us know.

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