Punypng will not do a lossy compression, it just strips and optimizes the existing image. I don’t know that there are any automated tools that will do it (and lossy compression is best left to the user right now anyway). The best way is to load the original file in an image editor (Photoshop, Gimp, whatever) and save out the jpeg, lowering the quality as low as you can while keeping the image visually acceptable.
The “standard” we use is to use a quality level of 50 with Photoshop’s “save for web” feature but you might be able to do even better manually.
Here is a 37KB version of the file:
[attachment=56]
That check is a bit iffy (and I’ll get rid of it when we merge the Page Speed and Pagetest checks). It looks like you’re doing a fair bit with alpha transparency for that image so it shouldn’t be converted to an 8-bit png.