1. A method for automatic color balancing in digital images on a data processing system comprising acts of: receiving a current color image into a data processing system; providing a set of Image-Wide Luminance (IL) factors based on the entire current color image; providing a set of Localized Luminance (LL) factors based on the current color image; computing a set of weights representing a combination application of the IL factors and the LL factors; computing a set of color balance factors, where each color balance factor is computed from the IL factors, the LL factors, and the weights; and constructing a new color image using the set of color balance factors and the current color image; and wherein the act of computing the set of color balance factors comprises multiplying the IL factors with IL weights to generate IL balance factors and multiplying the LL factors with LL weights to generate LL balance factors, and adding the IL balance factors with the LL balance factors to generate the set of color balance factors.