Well since the advent of the Digital SLR cameras a new file format came, RAW! what is it exactly? Well RAW is a file that has little data processing from the Imaging sensor (CCD, CMOS, NMOS,etc) of your digital camera, the name RAW implies those files aren't processed yet, So What is the advantage of using RAW? let's do a list:

1. You will be in command of the processing of the image: White Balance, Color Saturation, Contrast, Sharpness, Noise reduction, etc (instead of allowing the camera to do it)

2. JPG format is a file that is compressed, RAW data isn't or it is minimally compressed, the photo will yield more "quality" -meaning that you will have more per pixel sharpness sometimes in RAW vs JPG-

And some more, but let's focus on why you want to use RAW, RAW data has more latitude for corrections, as an example if your photo came underexposed you have more latitude to correct this problem than when you do it with a JPG this means the post processing in this area will be less aggressive, Also if your camera couldn't interpret the White Balance [link] you can manualy set the desired White Balance (incadescent, tungsten, sunny, etc) or the Kelvin temperature.

This means in order to have the best quality in your photo or to have what many call "the digital negative" RAW proves to be very useful, Many of todays professionals use it to ensure the quality of their photos for the clients.

RAW files aren't available in all digital cameras, all Digital SLR cameras [link] have this nice feature, as well as some Bridge Cameras [link] and a few digital compact cameras, RAW takes a lot of buffer in your camera and room in your memory card, that is why this kind of file is handed to digital SLR cameras since they have larger buffers, this means that in some bridge and compact cameras that have RAW will experiment very noticeable slowdowns in their performance.

Many manufacturers include a RAW handling program, only Nikon being the exception wich gives you a very basic RAW software Conversion, but there are some options let's see them

1. Adobe Photoshop CS2 is the favorite program for handling everything that is photographic and some stuff in graphic design, thanks to the Adobe Camera RAW plugin the program works as a RAW battle station.
Pros: Versatile in conjuction with the Bridge function.

Cons: you need a lots of RAM if you dont want your compurter to freeze

2. Camera maker RAW program, Canon, Pentax, the extinct Konica-Minolta, Sony, etc will give you the program included with the camera, some are a breeze to use, some other are limiting.

Pros: they come with your camera!
Cons: depending on the brand they are inferior to Photoshop CS2, some manufacturers like Nikon include a very, very Basic version even in their pro digital SLR line.

3.Pixmantec's RAW shooter essentials Some may say "but they have been bought by Adobe", yep but as for today you are able to download this neat program, this is the free version of RAW shooter professional, it has some functions stripped but it will allow you to play with your RAW files and convert them to JPG or export them to programs like Photoshop CS2.
Pros: Free!
Cons: It won't be updated for newer cameras.

4. Adobe Lightroom. As for today they are in Beta 4 of this neat program, an elegant and versatile program that it vastly improves the speed of the work flow, it allows you to correct RAW and JPG files, IMHO one of the best solutions to do work with both RAW and JPG files.

Pros: One of the best programs to work with RAW, indeed it speeds up your workflow when compared to using Photoshop CS2. Right now you can download it and test it from Adobe site free of charge.

Cons: Big RAM eater, needs Pentium 4 3.0ghz 768mb ram (1GB recommended) to run smoothly
Still in Beta phase it has some bugs.
Those are the ones I have tested, but there are more programs that handle RAW files.

You have to know that depending on the camera maker there will be trade ups when you use RAW files.

1. They are big files, some camera makers do loseless compression to the files (think of something ala winzip or winrar) some others don't do it but either way the use more room in your memory card than JPG files.

2. Depending on your camera your burst will be reduced, Pro digital SLRs have a big bad ass buffer to capture a large number of RAW files, entry level digital SLRs have a smaller buffer and lesser cameras will suffer of a noticeable slowdown in their performance since their buffer is tiny.

3. An extra step in post processing is needed since you have to convert your RAW image in JPG or TIFF.


Wich should I use? well that is up to you, I use RAW when I am working, and my little brothers photos, but for everything else I shoot in JPEG format, in anyway I invite you to try it and see it for yourself