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This is generally ok but if you try to edit a JPEG and then recompress it when saving your image will degrade. JPEG is your camera's attempt to predict what the best 'final'image is, so it is sharpened and saturated in camera, this does mean the recording ignores some details, hence the smaller file size. If you have a quick workflow for conversion and a large hard drive, then RAW is the medium to go for. Traditionally, even a perfectly captured shot will need sharpened and saturated in it's RAW format. Simply put, if you captured the detail in camera, it's there to play with. This means that you can edit it non destructively, and your RAW editing program will also have the information on each pixel to determine what would happen to the true image if, for example, the white balance was changed. The advantage of your NEF file is that it contains all of the information the camera saw, in, well, raw detail. It just means you end up with 2 fairly large files, your original NEF and a DNG. I use this on the laptop where I don't want to upgrade my program.
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That can be read in CS3 without a problem.
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#Shoting raw and fotofuse for free#
But there is a good workaround, you can download for free from Adobe a program called Adobe Raw Convertor which is upgraded regularly, it will take your Nikon raw and convert it to a DNG file, which is Adobe's own digital negative file. I don't know if you can open the D3200 raws in CS3, I suspect not, as it is an old version of Photoshop and I think your D3200 is newer, they don't upgrade the raw in Photoshop once they have moved onto a later version and they are now on CS6. If you only want jpegs then go for the fine, if you are going to use raw then a small jpeg will let you see what you've got without a problem.
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You can choose in the menus whether you want a fine, medium or small jpeg, it's up to you. You have stated the situation exactly, the camera is recording the image twice, once as a raw file and once as a jpeg, in this case fine which means high quality.
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