Jpeg is fine
I do some free lance photgraphy, mostly outdoor portraits and I have been shooting RAW with my Nikon D70s. I am being paid for these shots, and the clients want them PERFECT. When I am shooting my daughter's track meets and family gatherings, I use the highest quality jpeg settings. I have a 4gb CF II card, so space is not an issue. I believe that the advice on Aperture is dead on, but you will have to upgrade your RAM considerably. My opinion is that 4gb is about right. I have ordered a D2xs Nikon and when it comes, I will continue to shoot primarily jpeg except for the times I am shooting for a client. Unless you are willing to put in a lot of effort, there is no real benefit to RAW. Also, ignore what anyone says about using RAW with iPhoto. PhotoShop Elements too. To truely get the maximum benefit from a RAW image, you need Photo Shop, preferably CS2, neither of which are available in Unviversal Binary at this time. I run Adobe CS2 on a dual 2.5gz Power Mac with 4gb of RAM, 30 and 23 inch monitors and a 500gb external hard drive. I always archive my photo files to DVD as well, you can never have too much back up for pictures. Enjoy taking the pictures of your family and friends, and shoot more. Shoot a lot more. You can always delete the real dogs, but when you fire off a burst, I believe 2.5 per second for the D50, you sometimes catch great pictures. Enjoy your digital photography for awhile before you take the financial and time commitment to shoot RAW.