[Jorge]

I do a lot of photo editing and learned that saving in jpeg format did reduce the quality.

I now immediately convert my camera's photos to bitmap files even though many of my final photo versions end up being 30-40 MEGS. Storage space and CD's are cheap so it's worth it.

[Prime Choice]

saving in jpeg format did reduce the quality.

You betcha. JPEG is a lossy format. Whenever I need to store in a lossless format, I stick with either TIFF or PSD.