Hi Kendall,
I convert to 16 bit tif, then to 8 bit tif, then to jpeg.
16 bit tif: Non-lossy format, perfect for any extra sharpening that might need to be done. Twice the byte size of 8 bit tif. Any further correction (red-eye fix, tweaking color correction, etc.) that can be done in 16 bit tif ought to be done in this format. One thing you can't do in this format is move pixels around.
8 bit tif: Also non-lossy, and now you can move pixels around if you need to. When I'm satisfied, I save these to dvd-r for use as "digital negatives" for any future manipulation including converting to B&W, sepia tone, partial coloring, etc. These files can be resaved over and over while working on them, without loss in image quality.
jpeg: What I send to the lab for prints. A lossy format that's best not resaved much as an image can quickly start getting a little fuzzy, and colors become blotchy. If all you have to work with are jpeg files in the first place, and you want to make some corrections or changes, best to convert to 8 bit tif while you're making your changes; then when you're happy with what you've come up with, convert back to jpeg.
The program I use for converting RAW to 18 bit tif is called Capture One Pro. It's very expensive, but works great and performs batch file conversion, which is essential when you're shooting a wedding and you've got several hundred image files to plow through. However, most digital SLR cameras come with some kind of RAW conversion software that will do the trick for you and save you the expense of buying the program I use.
I hope I've been helpful!
Ernie
PS. Satellite Radio is the coolest fucking song I've ever heard. Hillbilly hip-hop! Too cool! I can listen to that song ten times in a row and not get sick of it. (I thought I'd throw that in for some relief from the techie-talk.)