I think it’s important when using raw to make adjustments to exposure etc in 16 bit mode in Raw before opening in Photoshop for further adjustments (cloning etc). I normally convert to 8 bit Jpeg as the last step in my workflow. Any adjustments after this stage will be destructive to the image.
I mainly use Canon’s DPP (Digital Photo Professional) with occassional use of C1. I’ve tried pretty much all of the RAW converters out there and nothing beats DPP for great skin tones and sheer ease. Plus it’s free as well! When Canon released DPP 2.1.1 I converted to shooting everything RAW – no more jpegs! It was taking me longer to make small corrections to JPEG “originals” than it was to produce perfect images from RAW files, so now I also use RAW becuase it’s simply a quicker workflow. I can sort, edit, correct and convert a whole shoot into finished JPEG’s or TIFF’s in a very short space of time. It’s a much underrated piece of software because too many people listen to what others say about it and dismiss it without first trying it out themselves.
I’ve started using DPP recently and am a convert to RAW shooting. When I tried it a year ago on ver. 1.16 (or something) I wasn’t too impressed. It’s moved on quite a heap.
Can I divert your attention for a moment to another thread I posted a question on, which is basically about RAW workflow vs post porcessing in Elements/PS/CS2.