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Correct Dave.
The best way to save an image for presentation to the web, with minimal compression and maximum detail:
1. Always work in full-size TIFF where possible - from the camera, and while processing. Always re-save as TIFF at each intermediate step (where you use multiple applications). Every time you re-save as JPEG, you're losing detail - so avoid saving as jpeg AT ALL until the very last step.
2. Resize for web presentation - usually 800px wide or thereabouts. Anywhere from 600px to 1024px wide is usual.
3. Use Photoshop "Save as web" menu item (under File). Adjust the quality slider until the "file size" preview is under the limits for where you are posting (ie: on IIS, 150k).
That way, you'll end up with less compression and a sharper, cleaner image.
Hope that helps!
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