The Posterize effect lets you specify the number of tonal levels (or brightness values) for each channel in an image. The Posterize effect then maps pixels to the closest matching level. For example, choosing two tonal levels in an RGB image gives you two tones for red, two tones for green, and two tones for blue. Values range from 2 to 255.
This effect works with 8-bpc and 16-bpc color.

The note about the Posterize Time effect is---obviously---in the wrong place. This note should be in the Posterize Time effect section:
http://livedocs.adobe.com/en_US/AfterEffects/8.0/WS3878526689cb91655866c1103a9d3c597-7a54.html
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