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Troy,
I get IRIS to output directly to a *.PSD file.
When it opens, I assign ProPhoto RGB or Adobe RGB (depends on what I'm working on, really). Before I save for web (I don't use the Save for Web and Devices tool, except to save my 640x427 images for IceInSpace attachments), I convert to sRGB. So, yes, pretty much as you've described.
I have found that there is very minimal clipping. I reckon the majority of the damage occurs when changing the mode of the image from 16-bit to 8-bit.
Apart from saving the original in ProPhoto RGB, I save all my images that are to be printed, in two formats: Adobe RGB and sRGB. Adobe RGB goes to print, sRGB goes to web.
I love ProPhoto RGB.
Regards,
Humayun
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