According to the PNG Specifications at http://www.w3.org/TR/PNG-Filters.html The purpose of these filters is to prepare the image data for optimum compression.
With the None filter, the scanline is
transmitted unmodified; it is only
necessary to insert a filter type byte
before the data.
The Sub filter transmits the
difference between each byte and the
value of the corresponding byte of the
prior pixel.
The Up filter is just like the Sub
filter except that the pixel
immediately above the current pixel,
rather than just to its left, is used
as the predictor.
The Average filter uses the average of
the two neighbouring pixels (left and
above) to predict the value of a
pixel.
The Paeth filter computes a simple
linear function of the three
neighbouring pixels (left, above, upper
left), then chooses as predictor the
neighboring pixel closest to the
computed value. This technique is due
to Alan W. Paeth [PAETH].*