A method and system implements a high addressability characteristic into an error diffusion process. A histogram of the image is generated and the actual background and black reference values are determined. A gray level value representing a pixel is received. The gray level value has a first resolution which corresponds to an original input resolution. The gray level value is interpolated to generate subpixel gray level values which correspond to a second resolution. The second resolution is higher than the first resolution and corresponds to the high addressability characteristic. A threshold circuit thresholds the interpolated gray level value and generates an error value as a result of the threshold using the determined background and black reference values. The error value has a resolution corresponding to the first resolution. A portion of the error value is diffused to adjacent pixels on a next scanline.
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