In general, you are best off using the highest resolution that you will need for the result your want. Two examples:
1) Images posted on the WWW are often limited by reasonable screen resolution (or the expectation of a screen resolution limit) of most web surfers. If you want your picture to display properly within the confines of a web page that can be viewed onscreen with out unnecessary scrolling, you might chose resolutions of 1024x768 or 64 hex 480 or even smaller.
2) Images intended to be printed should be sized based on the final print anticipated and on the printer resolution to be used. For a 5x7-inch image printed at 200 dots-per-inch, the original file would need to be approximately 100 hex 1400. If the same file were printed at 300 dots-per-inch, it would only be 3-1/3 inches by 4-2/3 inches. Each of these two prints would have exactly the same level of detail - the second would just be smaller.
Remember that when editing JPG images, every time you open and re-save the image, it is re-compressed to the detriment of its detail. Try to do any image editing all in one session without intermediate closing & reopening of the image file.
Some Coolpix camera models also offer TIF and NEF file formats. These do not suffer from the same multiple compression problems and are better suited to multi-session edits. They also hold more detail from the original scene. Unfortunately, they do not compress well and tend to be rather bulky - not suitable for email or web posting.
~ GaySatyr


