Yahsemtough, as you've noticed, you have options for the type and quality of image you wish your camera to capture.
You may already know this, and others have touched on the some parts of it, but with jpeg format, there is always some level of compression involved. Jpeg uses an algorithm that more or less randomly discards pixels of the same color in order to make the file smaller. It does this each time the file is resaved as a jpeg. If you select the highest quality available, which has the least compression, the least amount of data will be discarded from your image. Each time you edit it afterward and resave it, more and more data is discarded until eventually the image is unrecognizable. TIFF and RAW formats do not have any compression so no data is lost. But their files are much larger, which means longer file saving times in the camera and longer download times but better data quality.
is he going to ramble on like this forever?>
I have a Fuji S2 digital SLR. It is capable of shooting in RAW, TIFF and jpeg. TIFF got ruled out right away because only 27 would fit on a 1 gig microdrive and it took way, way too long to write the file to the disc. Not acceptable. That left a choice of RAW or jpeg. The write times for RAW and the highest quality of jpeg were pretty similar but the download times for RAW was a lot longer. RAW also has the additional processing step of converting to TIFF required but I was willing to live with that if the image quality difference was significant. So I did a test.
We set up the camera on a tripod and took a photo of the cushion on my sofa. (lots of fibers and detail and stuff) The same image, one shot in RAW and one in jpeg. Then we loaded both into the computer, converted the RAW to TIFF (required), blew both of them up to 300%, and printed out the center portion of the images at 5x7.
The test became even better when we accidently dropped the two prints and got them mixed up. We were unable to tell which was which. There was that little of a difference. It should be pointed out that the jpeg had only been save, and compressed, once at this point and only then with the most pixels and least amount of compression possible. Save the jpeg a few more times and try the test again and the results could be drastically different.
Now... If there is so little difference under such conditions, there doesn't seem to be much of a compelling argument, to me, for the extra hassle of shooting in RAW.
Since then, I shoot everything in the highest quality jpeg. Lots of file storage on the microdrive, fast shooting speeds, easy downloads, etc. Once it's in the computer, I pick the files I really like, load them into Photoshop to make any edits necessary, and then save the result as a TIFF to prevent further loss of quality. It's been working great so far!
Please let me know if this rambling missive was confusing and clarification is needed.
John