I bought a new Nikon D40

[cleong]

There was a time where I shot in RAW but that was because the standard camera output just wasn't good enough, particularly with handling white balance. With the advent of better cameras, I just couldn't justify the extra time required to do the RAW edits and conversion, then do another round of postprocessing in Photoshop.

Nowadays I shoot in JPEG Fine, use the camera's settings to push saturation and sharpness up a bit and export it straight to Photoshop for the final tweaks. Sometimes I just use Picasa if the output isn't critical.

I still use RAW very occasionally, but only when I know I'm dealing with tough lighting situations and don't have the time to keep switching my white balance, such as for weddings.