A versatile and useful personal computer based procedure to generate halftone representation of digitized image data is presented. This feature provides limited interactive image processing capability for a basic personal computer work station without having to acquire a video monitor and a digital-to-analog converter board. The generated halftone images can be displayed on the standard dot-addressable graphics monitor, and/or they can be printed on regular paper via an associated printer. The halftoning procedure is based on an error diffusion technique in which dots are produced randomly, one at a time, based on both the local gray level value and some accumulated measure of the error due to previous assignments. The key elements in halftoning, such as dynamic, spatial, and display medium resolutions, are defined, and the mathematical correspondence among them is established.