Gradient Not Smooth – Photoshop CS4 Banding

I had recently an issue with a black to dark gray gradient created in Photoshop CS4. This gradient was used for a website background, repeated along the y-axis, where it produced some annoying vertical blocks of solid color, example below:
photoshop cs4 banding
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In order to get rid of this “banding” issue I did:

  1. Recreated the gradient in 16 bit
  2. Selected Bicubic Smoother when saving for web
  3. Adjusted the gradient by moving the black and grey extremes closer to the center, so the gradient spans over a smaller area

The result was much better:
smooth gradient
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However still not perfect. If anyone has a better solution to this I would love to hear about it.