it will give you slightly better picture quality ready for editing, you'll also have the ability to make corrections to exposure, etc using the initial data from the camera. RAW is the only way to shoot. RAW takes up more space on the memory card though, on my 350D a full resolution jpeg is about 4Mb and RAW is 8+Mb.
Yeah - on my s5600 they're around 18 mb each, which, on my 512mb xd card means that I cant really store a lot.. so is it worth it? Uh I dont think im really like to change the exposure during editing etc
Raw isn't really nessarsary unless you are printing, doing HDR, or just particularly want a snap of something in high quality that you will edit later. I normally shoot in JPG, but for stuff like the photo comps on here i shoot in raw.
That's the most sensible and unbiased explanation I've seen. There's a place for RAW and a place for JPEG, if there wasn't cameras wouldn't have the option.
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