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I was fine when I was using a simple 3.5 mp camera and loading 72 ppi photos in jpg format. Now i'm using a 10 megapixel camera and loading the 240+ pixel per inch files into the computer in RAW format plus whatever format I use for viewing. As you said, multi layer files in photoshop can be awfully frustrating.

I'm starting to do some photography work for my sister who is a pro and I'm definitely going to need something that handles the graphics better. I've ordered a 5 gig external hard drive for easy storage but that's only going to help so much.