Quote:
Originally Posted by ether
strictly speaking photoshop does and it doesn't it handles raw images through Bridge which comes with it but you cant save in raw so it doesn't if you see what I mean it is the industry standard for photo processing but Elements is cheaper
Ed
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And to be even more strictly speaking

it's not Photoshop/Elements that does the developing, rendering, processing (call it what you will), but the Camera Raw plug-in to it. In this it differs slightly to Adobe Lightroom in that there is no additional plug-in but instead the entire application (Lightroom) is built around Camera Raw and uses the same engine. For that reason, users of Lightroom who wish to maintain full integration with Photoshop should, at the same time as any updates are released for Lightroom, ensure that the Camera Raw plug-in for Photoshop is updated at the same time. Latest version of Lightroom is 2.5 and ACR (Adobe Camera Raw) is 5.5.
As to the jpg versus Raw discussion this is very much dependent upon both the photographer as well as the use the images are to be put to. For instance, a press photographer who prime purpose is getting images to the newspapers image editor for publication is more interested in the speed in which this can be achieved rather than the image quality. Within reason of course. A landscape photographer on the other hand wishing to retain as much of the captured image data as possible for self processing may well choose to shoot in Raw as opposed to shooting in jpg whereby the camera controls the quality of processing as well as the amount of compression the result of which is to throw away data.
So in short, there is no right or wrong answer to the argument of 'should I shoot in jpg or Raw'. The camera (most) are capable of both and it's up to the user to consider the situation, the amount of control that he/she desires and of course convenience. That's may take on it anyway.