From: Daniel Piechnick
Hi Jim. Yes, I mainly use Photoshop 7 for my work. When you save something you've been working on, always save it as a Photoshop PSD file. When you want to save it for looking at, emailing, or for putting on the web, use Save for Web. Choose jpeg and set the quality for 60. This optimises the file size to half its original size, but doesn't visibly reduce the quality of the image.